The Conservatives and the Democratic Unionist Party (DUP) from Northern Ireland signed a deal this afternoon that cements Theresa May’s majority in the House of Commons. This deal was designed to make sure that when the Brexit talks come to an end in 2019 the deal will be voted through the House of Commons. The information available so far suggests that in order to gain support from the DUP there will be over £1bn extra available to Northern Ireland’s Government.
Mark Carney Speech Tomorrow
Bank of England Governor Mark Carney will speak tomorrow morning shortly after the financial stability report is released. The Governor who recently talked down any Sterling strength by suggesting an interest rate hike is still longer term, could cause a stir tomorrow. Mr Carney could potentially change his view and suggest despite immediate needs not suiting a hike, there could be scope eventually this year.
Currently inflation levels are increasing at a fast rate and the Bank of England’s mandated level of 2.0% has already been met. With this in mind I can’t see how there isn’t something that will have to change eventually. An interest rate hike would be well received by the markets and could help Sterling to jump up for the first time in a short while.
In a week of speeches Mark Carney will also speak again on Wednesday and there will be comments from US Federal Reserve Chairwoman Janet Yellen and European Central Bank President Mario Draghi. The comments from all the central bank leaders could lead to volatility and hopefully an insight into economic plans moving forwards.