Sterling enjoyed an uplift yesterday after better than expected GDP data, but remained around its lowest levels for the year as trade talk uncertainty continues to weigh.
Preliminary GDP data showed that British economic growth showed no change for the fourth quarter of 2019, despite predictions that it would slow. The economy is estimated to have grown 1.1% year-on-year, the same as in the previous quarter and beating expectations of 0.8%.
The data also signalled that the Bank of England probably won’t be cutting interest rates imminently. At their last policy meeting, the BoE said it was interested to see if growth would pick up after the December general election. Mark Carney made his final appearance in front of the House of Lords Economic Affairs Committee yesterday afternoon, and said that we can expect interest rates to remain low for the foreseeable future, and any upward adjustment to rates would be relatively modest.
Meanwhile, the government has demanded that the EU sign up to an agreement to ensure that the City of London can maintain access to the European financial market. This comes after the EU suggested that they would impose strict financial regulations on the UK after Brexit.
