United Kingdom: After the referendum – BNPP
|Research Team at BNP Paribas, suggests that UK’s historic vote to leave the European Union is now likely to be followed by a long process of negotiating the exit and the new relationship.
Key Quotes
“Within the Conservative party speculation over a change of leadership will probably now mount.
With Scotland’s electorate having expressed a desire to remain in the EU there is a possibility for calls for a second Scottish independence referendum.
Uncertainty over the future UK-EU relationship and the UK political outlook will weigh on the economy. We expect it to stagnate over the next two to three quarters. Overall, we expect the level of GDP in 2018 to be almost 2% lower than previously forecast.
Sterling is expected to weaken which will put upward pressure on inflation. We see CPI inflation at 2.7% in 2018, against our previous 2.0% forecast.
We expect the Bank of England to ease policy cutting the Bank rate to zero and upping asset purchases (QE) by GBP 100bn.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.