The Bank of England has held interest rates at their record low amid signs of an internal split emerging about how to tackle rising inflation.
The fall in sterling following the Brexit vote helped British business shake off a period of uncertainty to end 2016 on a high note as companies reported increases in export sales and orders.
Uncertainty over the outlook for the UK economy after the Brexit vote in June has sent the pound plummeting to levels not seen since the 1980s.
When Canadian Mark Carney accepted the job as Bank of England governor in 2012, he said he was honoured to accept the “important and demanding role”. It is doubtful he could have foreseen, however, quite how demanding it would turn out to be.
The Bank of England has left interest rates at their record low of 0.25% but repeated a warning that higher inflation and slower wage growth risk squeezing household budgets and spending next year.
The Bank of England should be wary of rushing into interest rate rises to curb inflation, according to its chief economist, in a warning that the UK economy is vulnerable to a sharper slowdown next year than current forecasts would suggest.
The England winger looks revitalised under new manager, Pep Guardiola.