U.K. Economy in gloom due to Brexit uncertainty
Investors are apprehensive with news of renewed Brexit uncertainty. They had looked into the Kingdom’s economic fundamentals that strongly suggest of economic slowdown. Should the stagnation carry on, rate cut speculations will happen and will pressure the Pound further
The Bank of England lowered the forecast for quarterly growth in the remaining 3 months of 2019 to 0.1. Despite coming from 0.2%, the Bank of England is optimistic that it will see growth in early 2020.
However, the U.K. central bank had warned that the monetary policy might need reinforcing. Such is advised if the U.K. GDP is expected to recover unless Brexit uncertainties remain and global growth fail to stabilize.
Light may also be seen according to economists should British businesses and investors feel clarity in 2020. Furthering the positive outlook, Johnson had also pledged to increase the Kingdom’s government spending in the next 5 years. Alongside this, an end to austerity must be brought to the table, thus boosting the U.K. economy.