Brexit continues to dominate the news – and will do so into April with the extension granted by the EU. The quarterly reports are out from the Bank of England and the report is in from the committee set up by the European Parliament to investigate tax evasion.
Bank of England Reports Published in March 2019
Quarterly Bulletin – 2019 Q1 – Read the report
The Bank of England Quarterly Bulletin explores topics on monetary and financial stability and includes regular commentary on market developments and UK monetary policy operations.
Agents’ summary of business conditions – 2019 Q1 – Read the report
The Bank of England’s regular summary of reports compiled by their twelve regional Agents following discussions with at least 700 businesses across the UK every reporting period.
Monetary Policy Roundtable – November 2018, Published 22 Mar 19 – Read the report
On 8 November 2018, the Bank of England and the Centre for Economic Policy Research (CEPR) hosted their 17th Monetary Policy Roundtable. These events provide a forum for economists to discuss key issues relevant to monetary policy in the United Kingdom. This report summarises the main issues raised by participants.
UK Interest Rates on Hold Amid Brexit Impasse
From: The BBC
The Bank of England has kept interest rates on hold amid continued uncertainty over Brexit.
All nine members of the Bank’s Monetary Policy Committee (MPC) voted to keep rates at 0.75%, where they have been since August last year.
European Parliament Suggesting Action Against Tax Evasion
From: Daily Forex
The TAX3 committee was created by the EU Parliament after several tax evasion scandals. Recently they released a report detailing the several ways the EU tax system can be circumvented.
The report explains how about EU200 million managed to get out of the system and accuses seven EU Members – Belgium, Cyprus, Ireland, Hungary, Malta, The Netherlands, and Luxembourg – of being tax havens.
Whilst it is not a legally binding document the report provides detailed information about the different ways the companies bypass the EU taxation systems and recommends the creation of a financial police force in order to counter money laundering.
Currencies May See Wild Swings if Slow Growth Breaks CLO Market
From: Daily FX
Politicians, central banks and the IMF have warned about the increase in collateralised loan obligations (CLOs) and the threat they offer to the global financial system.
Currency markets may be battered by momentous volatility if a slowdown in global economic growth triggers a collapse in this unstable market.
UK Consumer Sentiment Falls to Five-year Low – EU Survey
Consumer sentiment in Britain fell to its lowest point in over 5 years in March, the month the country was due to leave the EU, a European Commission survey of EU business and consumer confidence showed.
German Inflation Slows in March, Dropping Further Below ECB Goal
German inflation remained below the European Central Bank’s target for a 4th month running in March, showing price pressures in Europe’s largest economy are still moderate despite the ultra-loose monetary policy.
FX Rates in March
Mar Low: 1.1535
Mar End: 1.1635
Mar Low: 1.1321
Mar End: 1.3077
Mar Low: 1.1201
Mar End: 1.1236