The Pound strengthened as the Bank of England concluded their February monetary policy meeting today. As the markets expected, they unanimously voted to keep rates on hold at 0.5%, however they hinted they could be looking at raising rates quicker than previously thought, potentially as early as May. They also signalled they could be looking at raising rates three times over the next three years, rather than the two previously predicated. The BOE also lifted their forecasts for economic growth, revising the GDP growth forecast for this year and the next up by one-tenth to 1.8. In the press conference which followed, BOE Governor Mark Carney explained he expected the inflation figure might rise to around the 3% level again in the short term and that he sees wage growth rising in line with the CPI target soon.
UK Prime Minister, Theresa May has continued meeting with her Brexit Cabinet Committee to discuss how the future relationship between the UK and the EU would look. She plans to remove some of the EU rules immediately after the UK leaves the bloc. One of the rules the UK would be looking at removing is the EU customs regime, as it would allow the UK to make its own trade agreements with other countries. The EU are expecting the UK to clarify their ideas on the future relationship tomorrow.