10-15-2016, 11:52 PM
CS are estimating, in their base case, that CPI inflation will go from 0.7 per cent in 2016 to 2.3 per cent in 2017 and 2.5 per cent in 2018, with cable constant at 1.20. At parity? Well you can see the chart and won’t be terribly shocked, but we do wonder at what point the BoE finally gets nervous. As Simon Derrick at BoNYMellon has said, the UK’s policymakers have a track-record of allowing the currency to take the strain and act, in orthodox fashion, as a limited release valve.
GBP, inflation and the BoE, choose your own adventure edition | FT Alphaville
The Brexit vote clearly presaged an impending economic disaster. Hate crimes are up by 41%. A report from Euler Hermes, the world’s largest trade credit insurer, this week said hard Brexit would put more than 1,400 UK companies into insolvency. They argued that much of the damage would come from falling trade levels and lower consumer confidence.
A decline in UK living standards may be too high a price for Brexit | Business | The Guardian