What is the outlook for the UK economy?

[Guest Sam Bouman]

[Jon Steeler]

The UK economy is currently surprisingly in a stronger place then expected, today the interest rate decision is expected to stay the same but the city economic surprise index (the index on how good data has been in relation to the forecast) has been rising since earlier this year and it looks like a Brexit deal could be on the horizon.

There is also some talk of potential inflationary conditions which could mean a hike in interest rates (not now but once the Brexit path is clearer so potentially late 2019 or earlier in 2020). 

So we will possibly see a neutral/positive tone from the BoE later today in their rate statement,  however inflation is below the 2% target and has been in decline for a few months which does add some risk to the economy.

Wage growth is strong which in turn means that consumers aren't being put off spending and although the housing market isn't the greatest currently the first time buyer market is quite strong right now with lower prices in general making it easier for the first time buyers to get on the housing market. 

On the whole with the possible customs union deal between the two main parties being struck for Brexit and positive economic data I think we can expect some more pound strength in the near future.