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Whilst the new British Prime Minister Boris Johnson has been reaching out to the four corners of the UK, the PM’s trips to Scotland, Wales and Northern Ireland coincide with economic news that the likelihood of a no-deal Brexit is affecting the pound.
The Bank of England has given a one in three chance of a recession, even if we reach a deal with the EU post-Brexit. Mark Carney has reassured businesses and the public in his statements that financial institutions in this country are well prepared. However, he has also stated that with a no deal Brexit inflation is likely to be higher and the UK economy will slow. Furthermore, with the likelihood of no deal increasing, the CBI has published practical steps that both businesses and Government can take to combat any effects of a no deal Brexit. Josh Hardie, Deputy-Director General of the CBI said: “Preparing for no deal is devilishly difficult.” “The CBI will continue to support its members” “but it will need all parties to raise their game.”
Source: (Reuters, Sky News, FT)
by Y.B.M. 2nd August 2019
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