UK: PM May’s tone of the speech was constructive and optimistic - ANZ

Analysts at ANZ note that the UK PM Theresa May outlined her government’s objectives for Brexit negotiations overnight.

Key Quotes

“Essentially the UK wants a new partnership to include a tariff-free trade agreement, some form of customs union and a phased introduction of new arrangements. The tone of the speech was constructive and optimistic. However, it shed no light on the EU's possible response. Tariff-free trade across goods and services is effectively what the single market is, along with its other two freedoms – the movement of capital and people.”

“The UK taking advantage of the free trade element without the other aspects will be a source of huge debate and something the Europeans have been opposed to. In the short term, the GBP seems to have been discounted enough with inflation now rising and the BoE indicating it is more even-handed in its assessment of the economy and monetary policy.”