Below are some of the key highlights from the BoE Agents’ summary of business conditions for Q3 2018 and the latest monetary policy statement.
Agent’s Summary:
“¢ Consumer spending growth ticked up modestly, boosted by warm weather.
“¢ Rising uncertainty from Brexit leaves investment intentions soft.
“¢ Export and domestic manufacturing output growth slowed but remain above average.
“¢ Recruitment difficulties stay elevated, average pay settlements a little higher than a year ago.
Monetary policy statement:
“¢ MPC notes a rise in the level of concern regarding Brexit negotiations, as flagged by financial markets.
“¢ PMI surveys/ Bank’s Agent’s point to growing uncertainty about the economic outlook.
“¢ Pay measures a little stronger than bank foresaw in the August report, consistent with a further rise in earnings.
“¢ MPC’s August projection appears to be broadly on track.
“¢ The committee sees potential negativity from trade talk tensions between US and China.
“¢ Impact of pass-through from August hike similar to the response seen after November 2017 rate rise.
“¢ Rotation in demand, away from household consumption towards net trade/business investment less marked than previously assumed.
“¢ Bank rate likely to rise at a gradual pace and to a limited extent.
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