Rational Thinking – Sterling Falls As Boris Moves Closer To Becoming Prime Minister

Last week:

  • BoE holds rates constant at 0.75%
  • Q2 growth forecast cut to 0.2% from 0.0%
  • MPC concerned about global trade tensions


  • FOMC leaves benchmark rate unchanged
  • Inflation forecast has been lowered
  • Rate cut almost certain in July


  • Draghi points to 10bps cut in September
  • ECB will roll out new targeted lending scheme
  • Bank previously indicated rates would remain on hold

This week:

  • Trump and Xi expected to meet in Tokyo
  • Negotiations are expected to resume


  • Johnson and Hunt fight for Tory leadership
  • Boris likely to come out in front