Rational Thinking - Boris Won't Get Special Treatment

Last Week

  • Boris Johnson wins Tory leadership and becomes PM
  • Mr. Johnson happy to leave EU without a deal
  • Key positions assigned to right-wing allies


  • ECB leaves rates unchanged, confounding expectations
  • Bank has committed to further easing in September
  • Forward guidance mixed, not as dovish as expected


  • US GDP data showed economy grew by 2.1% in Q2
  • Fed still on course to cut rates this Wednesday

This week

  • BoE rate decision and inflation report due this Thursday
  • No change in policy expected amidst weaker data
  • No deal prospect also likely to weigh in on decision


  • Fed expected to cut rates by 25bps on Wednesday
  • Dollar remains resilient in light of strong GDP figures