UK: Economy guided by the politics – ING

ING analysts point out that as the UK government has recently confirmed that the UK will be taking part in European elections, which means that the new Brexit deadline is confirmed as 31 October 2019.

Key Quotes

“We see little chance of the Tories and Labour reaching any cross-party deal here and instead see a last-minute extension again being requested in October. Before then there is a (small) chance of PM May falling on her sword following presumably terrible May election results.”

“The UK economy isn’t doing that badly all things considered – growth expected at 1.5%. And the BoE want to hike in November, but may again delay depending on the Brexit extension.”

“It seems too early to be calling a bullish turn in Cable.”