THE POUND has traded better across the Euro and other major currencies in the second half of the week, despite “lacklustre” inflation results.
The top of the week saw the sterling sitting lower against major currencies on Monday but gained a slight increase of 0.04 percent to a more comfortable position.
“We will be watching very closely how firms and households respond to Brexit developments,” said Ms Tenreyro.
“We are talking about the coming months, or I am talking about the coming months, on the possibility of further stimulus.”
Her points were followed by BoE policymaker Gertjan Vlieghe, who told the Financial Times he will consider voting for a rate cut depending on how the economy has performed since the election in December.
“It doesn’t take much data to swing it one way or the other and the next few [MPC] meetings are absolutely live,” he said.
As the Brexit deadline draws nearer many Britons are concerned about how this will affect their travel plans, with 15.6 million surveyed British residents saying their biggest concern about Brexit is how it will affect their holiday.
However, the ABTA has issued an update for travellers in the run up to Brexit which may provide some relief.
In a press release, the ABTA said that the UK “is now on track to enter a transition period at the end of the month, meaning that all travel requirements and arrangements will remain the same until at least the end of December 2020.”
Mark Tanzer, ABTA Chief Executive, said: “The UK is primed to enter a new Brexit phase from 31 January, when trade talks begin, and when it does nothing will change when it comes to travel.
“This means that valid passports can still be used, EHIC cards will still be valid and the same gates can be used at border checkpoints. People can continue to make their travel plans with confidence that things won’t change until at least the end of 2020.
“As the UK’s most trusted travel association ABTA has been actively providing advice to travellers throughout the Brexit process and will continue to do so as the longer term relationship with the EU becomes clearer.”
