- Posted by currencies in Bank of England, Bremain, Brexit, Currency, Dollar, Economy, EUR, GBP, Inflation, Mark Carney, Prime Minister, Sterling, UK, Uncategorised
- January 16, 2020
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Inflation for the UK has fallen to the lowest level since November 2016; from 1.5% to 1.3%. The Bank of England has a 2% target for inflation which is far from current figures.
As a result of this, the chances of an interest rate cut have increased dramatically. Three Bank of England policy makers have hinted they could vote for a rate cut depending on the consideration of future economic releases for the UK.
Growth of the UK economy has also been stagnated which will also be regarded in the Banks next decision.
Should the BoE cut interest rates, we could see the Pound suffer further losses; adding to the 2% of GBP weakness since the beginning of 2020. Following over two years of back and forth between the US & China; a ‘phase one deal’ has been signed.
China will still be faced with $370 billion in tariffs however the US did agree to reduce $120billion in Chinese goods by half within the next 30 days.
China will also accept applications from bank cards and payments systems such as Mastercard, Visa and American Express into the Chinese market as a part of the signing.
Historically, the US had fought at the World Trade Organisation to gain access for payment providers.