01
Oct
The EU rejects the Chequers plan… no deal or new vote?
Higher GDP growth in Q2 (+0.4%). Unexpected upswing in inflation. Pound hostage to the political situation. Steepening yield curve. No Brexit solution.
Points clés
- Theresa May further weakened by the EU’s rejection of the Chequers plan
- The option of a new referendum is making headway as a means of breaking the deadlock
- A majority of British voters would choose to stay in the EU today
- The pound remains hostage to the political situation
- GDP growth better than expected in Q2 (+0.4%)
- Dim prospects for faster year-end GDP growth, sub +1.5% growth in 2018
- Period of inaction for the BOE after the 0.25% rate hike in August
- Unexpected upswing in inflation
- Likely steepening of the yield curve
- Continued caution with regard to British equities
