7th November 2016
Weekly Market Commentary
This week any hopes of finding something different to talk about were cruelly dashed when the high court ruled that the government couldn’t trigger article 50 without first running it by parliament.
This seems reasonable; the country has decided to leave the EU, but any plan to do so must be at least partly thought through and not something Boris Johnson scribbled on a napkin. It seems even our parliamentarians should be capable of setting that bar. This is apparently not what people voted for according to the usual suspects – although we don’t recall appointing Theresa May supreme leader being on the ballot.
Elsewhere, ignoring at least for this week what’s going on in the US, Mark Carney gave his most insightful interview yet. There were strong hints that any inflationary pressures would be dealt with, suggesting that a rate rise might come sooner than expected. Previously, it had been assumed that the bank was more relaxed about inflation that normal, but the governor was keen to dispel that myth. While there is a huge amount of wiggle room for the bank when it comes to inflation statistics, expect rabid speculation on rates to begin as soon as Brexit stops dominating the headlines.