Brexit negotiator, David Davis announced yesterday MPs will be able to debate and vote on the final agreement negotiated with the EU. However, he added the vote would only be on a take it or leave it basis, as the UK will still need to leave the EU on 29th March 2019, leaving some MPs unsure whether they are actually getting a say. The EU Withdrawal Bill is returning to the House of Commons this week for two days of debating. About 500 amendments have already been sent forward and the speaker will now choose the ones to be debated. Theresa May risks being defeated on any votes in regards to the amendments as the risk of a cross party rebellion is being to arise, between the Labour Party and the rebel Tories.
The Pound continued to tumble this morning as the UK CPI figure posted a worse than expected 3% as the cheaper cost of fuel offset the rising cost of food. Posting 3%, compared to the expected 3.1%, has spared Bank of England Governor, Mark Carney, from having to write to the Chancellor of the Exchequer as to why inflation is over the targeted 2%. Core inflation remained stable at 2.7 percent as inflation looks close to reaching its peak, as the BOE have predicted it will slowdown in the coming months.
Four Central Bank leaders; Janet Yellen, Haruhiko Kuroda, Mark Carney and Mario Draghi took part in a panel discussion this morning at the Central Bank Communication Conference. Whilst discussing the challenges and opportunities of central bank communications, they promised to keep guiding investors about future policy moves as they slowly being to withdraw their monetary stimulus, with Draghi stating ‘forward guidance has become a full-fledged monetary policy instrument.’ The event saw little market movements although the Euro began to edge higher, supported by a better than expected German Prelim GDP released earlier in the morning.