- May under pressure to justify more money for the Brexit divorce bill
- European Central Bank (ECB) President Draghi to address EU parliament
By Joe De Berniere
Friday saw Philip Hammond put Theresa May under pressure to promise more money for the Brexit divorce bill by suggesting an improved offer will be made to Brussels in the coming weeks. However, Brexiteers in the Cabinet are expected to use a crucial Cabinet Brexit committee meeting today to demand that May sets out exactly what Britain expects to get for its money before a penny more is promised. Boris Johnson who sits on the six person committee will try to block any move to pay a bigger divorce bill. Hammond’s comments pushed the Pound higher on Friday, and this was also largely helped by the better than expected UK retail sales data on Thursday.
On Friday, European Central Bank (ECB) President Mario Draghi told an audience in Frankfurt that the European Central Bank needs to be patient when normalizing monetary policy. This is because despite the improved growth in the nineteen member area, inflation remains subdued. In spite of what could have been seen as a tightening signal, the Euro fell, while stocks rose. In large part, that was because the ECB hinted it would continue to buy bonds for the duration of 2018.
Today, there is little economic data but we do have Draghi speaking throughout the course of the day in Brussels. Monetary Policy Committee (MPC) Ramsden is also speaking this evening. The main focus for the week will be the Autumn budget statement on Wednesday which will prove important in terms of the credibility of the UK Government and the economy’s potential growth trajectory.