CCR Magazine

You are here  :Home arrow News arrow Expert comment on how Brexit will impact the UK economy
Contact Us Newsletter Signup RSS Feeds

Latest News Headlines

Headlines

 
Commercial Credit News

Headlines

 
Expert comment on how Brexit will impact the UK economy PDF Print E-mail
Tuesday, 21 June 2016
Daniele Bianchi, Assistant Professor of Finance and researches financial econometrics, asset pricing and commodity markets at Warwick Business School, said: "On the whole, the negative impact of Brexit on exchanges rates, on the political landscape, and on international trade agreements, will cause short-term damage to the UK economy, which will be unlikely to thrive in the longer run either. 

"If the UK votes for leave we should expect a substantial depreciation of sterling across major currencies in the very short-term. Volatility of the exchange rate against the euro and US Dollar is likely to increase as well, reflecting market uncertainty on the consequences, both politically and economically, of leaving the EU with a potential sell-off in sterling denominated assets.

"The pound reacted quickly to opinion polls over the last week and will probably keep doing that as news on how the transition procedure to leave the EU unfolds.

"Another source of uncertainty that a leave vote could trigger is political uncertainty. Brexit campaigners are a minority in the current government and a vote for Brexit could lead to political turmoil and a call for a new general election.

"In the short to medium-term, this could also be reflected in the volatility of sterling against major currencies and financial markets as a whole, making the sterling devaluation persistent in the medium term.

"In the longer term the economic consequences of a vote for Brexit are more difficult to estimate although a negative effect is to be expected. Indeed, 55% of the UK's trade is with EU countries and 30% with countries that have agreements with the EU, agreements which should be re-visited in case of a Brexit. Arguably, leaving the single market would place the UK in a worse situation in discussing trade agreements."
 
Enghouse Side Banner

 Forums International Ltd

Forums International Ltd

 Attendance at your first meeting is free of charge, and please quote reference 'CCR2016' to receive the special 10% discount off of your first annual subscription.

Find out more here.

latest issue

CCR Cover

The latest edition of CCR Magazine, the leading editorial publication in the UK credit industry, is out.

Read the latest issue online

subscriptions

CCR is the premier magazine for consumer and credit professionals. It provides an independent voice to the industry, breaking major news stories and running in-depth features.

As a magazine, it works with and campaigns on behalf of the credit industry to promote its importance as a centre of potential profit and business development to the wider business world.

Subscribe to CCR Magazine

CCR World Magazine


 

Providing information and analysis for thousands of senior credit professionals worldwide, every quarter.

Find out more

GTS Media Ltd
81 Cambridge Road
Southend-on-Sea
Essex
SS1 1EP

Registered in England No: 05483197