Brexit and global slowdown, double whammy weigh on Bank of England

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Brexit and global slowdown, double whammy weigh on Bank of England

The BoE (Bank of England) meeting due next week would have more than just Brexit on its tangled mind, as a massive-scale global slowdown could have retested its plan of returning to an aggressive rate-hiking policy and the Great Britain Pound would likely to be vulnerable again to dwindle below 1.30 region, while keeping the UK stocks alive for now.

The upcoming BoE meeting scheduled to be held on next Thursday, the 7th of February, would likely keep the lending costs on hold at 0.75 percent, while the Great Britain had been having a daedal drama over its divorce deal with EU, as UK lawmakers had recently sent their PM to Brussels to renegotiate the Brexit deal on Northern Ireland border issue, which is something the bloc would likely to say no.

On top of the Brexit uncertainty, the world economy has been losing momentum, as two of the largest economic superpowers, China and Germany, had already shown numerous signs of a grudging global growth.

In order to grapple with the economic slowdown, the United States Federal Reserve had already decided to halt their three-year-long vivacious cycle of hawkish interest rate policy, and the Bank of England’s Mark Carney and his fellow rate setters would likely to be much dovish, in order to cheer up the businesses, which were trembling in recent pasts over the tormenting worries of leaving European Union with a no-deal Brexit.