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We expect MPs this week to take a big step towards a soft Brexit, which has been our base case since the referendum.
With a no-deal Brexit still a potential outcome and just over five weeks to go until the U.K. is scheduled to leave, it's about time we put some numbers on how high inflation could get in this worst-case scenario.
After the first round of voting by Tory MPs, Boris Johnson remains the clear favourite to be the next Prime Minister.
We often hear that the large gap between the slowing rising path for interest rates anticipated by the MPC and the flat profile expected by markets is justified because markets have to price-in all of the downside risks to the economic outlook posed by Brexit.
Interest rate expectations continued to fall sharply last week.
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