The Bank of England says business investment is stalling. Photograph: Maxian/Getty Images

One in three chance of Brexit recession has been warned by Bank of England

Aminy Andawi
Business Tips in Indonesia
Tax & Customs
Aug 02, 2019
2241
As the Bank of England has warned, at the start of next year Britain has a one in three chance of plunging into recession as the heightened uncertainty over Brexit drags the economy down. The central bank stated that business investment was stalling and the trade tensions, as well as slowing demand in the global economy, gave an impact on UK growth.

By the end of 2020, although the Brexit deal is reached, Britain has a 33% probability of falling into recession due to the impact of heightened uncertainty. Furthermore, the Bank’s governor, Mark Carney stated that the economy would be tough for the central bank to respond as Britain crashing out would cause an instant shock to the economy.

The bank continued to assume a smooth Brexit deal with Brussels despite the growing risks to the economy. The market expectation has increased sharply since Johnson has come to power with 40% rise, up from 15% in April.
Moreover, the Bank’s governor said that the best way for households and businesses to be provided with clarity is not by pushing no-deal departure. The MPC suggested that interest rates would need to rise in order to combat the rising inflation for over the next three years.

Source: https://www.thesun.co.uk/news/brexit/9636803/britain-recession-chance-brexit-deal/

Business , International