Fed Interest Rate Pause Isn’t a Roadblock to BOE Action
Given the high correlation between the Federal Reserve’s and Bank of England’s policy rates, it might be reasonable to assume that the Fed’s pause will take the U.K. central bank out of action. According to Bloomberg Economics it’s right to assume the BOE’s hands are tied, but it has little to do with the Fed and everything to do with Brexit. The uncertainty created by the lack of progress in negotiations and the risk of a no deal exit in October points to growth remaining below trend in coming quarters.
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