The Federal Reserve will make its monetary policy statement and announce the official rate on December 19, at 21:00 MT time.
BoE will permit EU banks to operate in Great Britain after Brexit
The Bank of England is going to permit European financial institutions to keep selling their services in Great Britain without having to create costly subsidiaries after Brexit. That’s what the BBC informed on Wednesday.
The verdict, if confirmed, would mean that EU banks providing wholesale services wouldn’t come across fresh hurdles to operating in London, taking on New York for the title of the global financial capital.
As a matter of fact, a BoE spokesman refused to comment on the report. The BoE is expected to unveil its approach to future supervision of foreign financial institutions at 1300 GMT.
The BoE's proposal could be interpreted as an indication of goodwill by the UK in Brexit negotiations and also an attempt to preserve Britain’s position as the financial center that hosts more financial institutions than any other.
By the way, more than 100 financial institutions working in London appear to be branches of lenders headquartered in the European Union.
Find out the main market movers for today and the reasons behind the risk-off sentiment!
November’s euro zone consumer price inflation was suddenly updated downwards on Monday, thus contributing to skepticism that the EU’s key financial institution won’t be able to move ahead with an interest rate lift next year…
Safe havens such as gold and Japanese yen declined as investors sentiment was boosted by eased geopolitical tensions…
On Tuesday, the euro tacked on because market participants waited for reports on inflation and growth in the euro zone, while the Japanese yen went down after Japan’s major bank told it would be more flexible in its huge stimulus program…
On Tuesday, the evergreen buck dived because the common currency bounced off and the UK pound managed to ascend to the day’s maximums reacting to reports that British Prime Minister Theresa May is going to take control of Brexit talks…