BOE's Carney Says U.K. Firms Focusing on Short-Term Brexit Plans

UK businesses have been focusing on short-term Brexit contingency plans, leading to increased stock building and a temporary boost in GDP. Despite these efforts, firms anticipate a decline in growth, investment, and employment in the event of a hard Brexit. The UK labour market has performed well, with unexpected growth in employment and wages, supporting consumer confidence and domestic demand. However, the housing market remains subdued. First quarter growth exceeded expectations, partly due to stock building, but a slowdown is expected in the second quarter. Financial markets remain sensitive to Brexit news, with global developments influencing interest rate projections.

What factors have contributed to the strength in real income growth in the UK?

How have global developments influenced market expectations for the Bank rate?