UK: Difficult times – BNPP

Catherine Stephan, Research Analyst at BNP Paribas, points out that the UK is just ten months away from the official date for withdrawing from the European Union, set for 29 March 2019and the political uncertainty remains extremely high.

Key Quotes

“The agreements that have been reached so far are still vague concerning such major issues as the handling of Northern Ireland.”

“Under this environment, it is hard to predict the most likely Brexit scenario. Moreover, as time passes without any concrete progress, it only reduces the probability that an overall agreement will be reached that is satisfactory for all parties.”

“The economy has slowed: growth is sluggish at a time when Sterling has depreciated and inflation is on the rise.”

“This has resulted in a very cautious monetary policy and the postponement of fiscal adjustments.”