Well I never the UK High court made a ruling and the government appealed. Where have I
heard that before.
The UK government would be better avoiding an appeal and just going straight to the EU courts. Who would take great joy in telling the UK courts that they have no jurisdiction over EU competencies.
Now it all depends on how much chutzpah May has. Because if she triggers A50 (let us not forget she has the “right” in EU law and can do it on her own), then there is nothing the UK courts can do about it except to hold her in contempt. Something the full power of the UK government would be brought to bear against and the courts might remember they “interpret” laws passed by parliament.
In the meantime and as I predicted, the £ has suddenly surged. Because of this decision? Not really. Because the BOE has started the long journey of backtracking on its political posturing that it did in the lead up to the referendum and immediately after.
What did they do?
Held rates. No news there.
Revised their predictions for UK inflation for 2017. They would have been insane not to and nobody would have believed them if they did not.
Revised their prediction for UK GDP growth. Well in the light of current PMI indexes, ONS stats on actual growth and the general state of the economy in relation to the EU and the world at large, only the US is in the same place as the UK right now. Even Germany is stalled.
Given indications that inflation is going to rise and stay high until at least 2019.
What they did not say
Anything at all about quantitative easing.
Wrapped all together, that means the bank is stepping away from any more easing, either in rates or in printing money and will, in 2017, start moving to a tightening bias.
The £ is responding to that news and will continue to respond. As for triggering A50, they have priced that in and will continue to price it in until the government says they won’t trigger A50 without a vote or another referendum.
Interestingly this opens up a whole new avenue. May could totally upset the apple cart by calling a snap election on the basis that the current MP’s were elected on an EU IN bias and that the people need to express their will at the polls in a Brexit scenario.
Labour would be crushed, the Lib Dems might pick up a bit and UKIP would be quite a wild card.
The field is open and the game is still to unfold. Those MP’s who launched this attack on the government to try and stop Brexit may feel the axe on their neck shortly. I’m beginning to become quite interested in the possibilities.