BREXIT: What will be the final deal?
Last Thursday, the British parliament met up to discuss the agreement for Brexit. Throughout the day, seven members of the British government resigned, one of them being the Brexit Minister himself, Dominic Raab. The president of the European Commissi on announced that on the 25th of November the agreement will be voted in the European Parliament by the other 27 members and will most likely be approved. This means that Theresa May does not have much time to approve the agreement internally. Every option is on the table: from premature election, her resignation or even a new referendum. This week is set to provide us with more hints on the outcome of this process.
Bank of Japan’s Monetary Policy
Next Tuesday, the Bank of Japan will release its predictions on interest rates and other policy measures. The interest rates are scheduled to stay low since the bank decided to continue to buy JGB (Japanese Government Bonds), even though their hoard assets have exceeded the Japanese GDP. In comparison, Federal Reserve’s assets are only 20% of US GDP and European Central Bank’s assets are only 40% of the euro-zone economy too.
Next Tuesday, the Reserve Bank of Australia will announce their interest rates decision. Since inflation is expected to increase, and although cash rates remained without any change, interest rates may increase too.
On the 22nd of November, the European Central Bank will present an overview of financial markets, economic and monetary developments. The ECB is predicted to continue buying assets from all countries until the end