Markets Await MPC Meeting GBP Sterling remained stable on Wednesday as investors continue to wait to see what the Bank Of England might have to say regarding the impact of Brexit on the British Economy. Uncertainty around Britain’s departure from the EU has left a strong mark on business confidence. Weak economic data makes it increasingly likely that Bank of England’s next move will be to cut interest rates rather than increase them. Money markets do not expect the central bank to cut rates in the near term until more clarity emerges on the political front. Furthermore, investors are calculating the risks that the upcoming general election may have on Britain’s ability to sign a trade deal with the EU before the new 31st January Brexit deadline. Sterling is likely to remain stable until the general election on 12th December. EUR The IMF has warned Europe to make an emergency plan for the current economic slowdown as monetary policy has been used extensively and risks have spread. The IMF went on to say ‘given elevated downside risks, contingency plans should be at the ready for implementation’. This comes after latest data showed that the euro area economy is proving more resilient than anticipated, driven by robust expansion in countries such as France. Germany went into a technical recession during the last quarter and the labour market in the continent’s biggest economy started to deteriorate. The Brexit uncertainty, along with weakness in trade and manufacturing sectors in Europe is causing a slowdown in the eurozone. The IMF are concerned that this weakness could spread into other sectors and want Europe to take action immediately. Key Announcements 11:00 – EUR: EU Economic Forecasts. 13:00 – GBP: BOE Monetary Policy Report. 12:00 – GBP: MPC Official Bank Rate Votes. 12:00 – GBP: Monetary Policy Summary.