Economy

Brexit talks: United Kingdom expects deal with European Union in three weeks

Brexit talks: United Kingdom expects deal with European Union in three weeks

It came as the Bank's Monetary Policy Committee voted unanimously to leave interest rates on hold at 0.75%.

Ireland has seen a surge in applications for passports following the UK's vote to leave the European Union.

Home Secretary Sajid Javid has slapped down his immigration minister for suggesting companies would have to check when an European Union migrant came to the United Kingdom before giving them a job after Brexit. After Britain voted to leave the European Union in June 2016, the currency fell 15 percent against major currencies, stoking inflation by making imports more expensive. Combined with a hit to supply chains and possible trade tariffs, that would argue for raising rates. That would normally make a case for lower rates.

With five months to go before Brexit, business leaders are demanding certainty over the kind of trade terms the divorce will deliver.

The deal being discussed would be based on the EU's existing system of financial market access known as "equivalence" - a watered-down relationship that officials in Brussels have said all along is the best arrangement that Britain can expect.

The BBC's political editor Laura Kuenssberg reports her sources as saying it remains "too early" to tell if there is a way of putting together a deal that will be approved by Prime Minister Theresa May's Cabinet.

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After the bank made a decision to keep its main rate at 0.75 percent, Governor Mark Carney said the British economy's supply capacity - that is, what the country is able to produce - could "fall sharply" in case of a disorderly Brexit.

Those going in person to The Last Mile lobby are contacting their MPs to ask them to meet them in Westminster, while the e-lobby, which people can join at this link involves signing up online and pledging to email or tweet the MP for the last British constituency where you were registered.

The Bank's central forecast assumes there will be a smooth Brexit, with a transition period starting in March.

The bank's inflation worry comes despite it pencilling in nearly three quarter-point interest rate rises over the next three years, compared with just over two in forecasts that accompanied August's rate rise.

The guidance, contained in the Bank's Inflation Report today, comes as an increasing proportion of currency investors hedge against the risk of a no deal Brexit but is likely to be deemed by Brexiteers to be more "project fear" from Threadneedle Street.

Wages have been rising and the job market has also strengthened since the Bank's last report in August.