Market comment

Bank of England cautious as consumer sentiment rebounds

DAVY VIEW

This morning’s UK GfK Consumer Confidence survey and November retail sales data paint a more upbeat picture for household spending in 2021. Nonetheless, yesterday’s Bank of England statement, accompanying its decision to keep policy on hold, was downbeat – still warning of downside risks from Brexit and signalling that the Monetary Police Committee (MPC) will tolerate CPI inflation in the event of a ‘no-deal’ outcome and associated tariffs and weaker sterling.

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Dec 18 2020, 07:55 GMT

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