Britain's economy, lifted by the country's post-election political stability, risks fresh turbulence as Prime Minister Boris Johnson seeks tricky Brexit trade deals amid global threats that include the coronavirus.
"There's still a huge amount of uncertainty over Brexit ahead of the deadline at the end of this year," OANDA analyst Craig Erlam told AFP. Investors have been reassured by December's election triumph for Johnson's right-wing Conservative party, which coasted to victory on a pledge to get Brexit done on January 31.
The near-term health of Britain's economy will also be dictated by how key events -- ongoing US-China trade talks and fallout from the spreading deadly coronavirus -- will impact global growth, according to analysts. The United States has said it hopes to reach a trade deal with Britain by the end of the Brexit transition.Turning to the outlook, economic growth is forecast to slow slightly to 1.2 percent this year, according to the BoE's most recent outlook.