I am pleasantly surprised to find the Bank of England Monetary Policy Committee managed to hold rates steady at the 0.50% all-time low, and not expand its purchased assets beyond the previous £350 billion. It is a triumph of sane assessment of real conditions over highly anticipatory policy making.
The safe-haven yen rose sharply against the euro and dollar while sterling fell to its lowest in more than 30 years today, as currency markets fretted about more signs of economic stress stemming from Britain's decision to leave the European Union.
European equity markets are expected to open a little higher on Tuesday as traders look toward the CPI data from the UK and the United States for signs that inflationary pressures are actually returning.
It’s been a relatively slow start to the week but things should pick up on “Super Thursday” as we get the latest monetary policy decision from the Bank of England, the minutes from the meeting, the latest inflation report and we hear from Governor Mark Carney.
In normal circumstances, the Bank of England might be close to pumping more stimulus into Britain's economy, given recent signs of a sharp slowdown in growth and a rise in the number of people out of work.