Theresa May’s Deal with Brussels Fosters U.K. Economy

The Bank of England thinks that the Brexit risk of “no deal” has lessened because of Theresa May’s Brussels agreement in the past week, which would be beneficial for the U.K. as it may boost the economic confidence in the next few months.

This was expressed in the bank’s latest minutes of the meeting by the Monetary Policy Committee. The votes were unanimous including all nine members of the MPC to sustain the rates at 0.5 percent after an increase in November for the first time in a decade.

The main reason for that UK’s economic forecasts is deemed to be worse. The minutes showed that the MPC’s view would progress in reduction of a problematic exit and support the household and corporate confidence. Moreover, the minutes also hinted more economic considerations in the following economic forecasts which is due in February.

Last Friday, the Article 50 talks between the European Union and U.K. was said to have done an important advancement on major topics of negotiations as well as EU citizens’ rights, the Brexit divorce bill and the Irish border.

This would open important talks between the U.K. and E.U. to iron out the deal and the regulatory transition agreement to commence immediately after Brexit in March 2109.