Economic Review – December 2019

The Bank of England (BoE) left interest rates unchanged following the latest meeting of the Monetary Policy Committee (MPC), although two members of the ninestrong committee once again voted for an immediate cut in rates.

A sweeping Conservative victory in December’s election has provided Boris Johnson with a large majority that should pave the way for him to drive his vision of Brexit through parliament.

As the decade drew to a close, leading global markets finished the year in positive territory, with some reaching record highs as trade concerns eased. The finer details of a phase 1 US-China trade deal and Britain’s negotiation of a free trade agreement with the EU are key focuses for investors in Q1 2020. Hopes of concrete progress on the trade front were bolstered between Christmas and the new year, when White House trade adviser Peter Navarro said the US and China looked likely to sign a deal early in 2020.

The latest batch of employment data released by the Office for National Statistics (ONS) shows that the UK labour market continues to confound economists with the overall employment rate rising to another record high.

Official retail sales figures show that UK consumershave been keeping a tight rein on spending in the face of ongoing political and economic uncertainties.