Macroeconomic round up: the economic cost of the “Brexit”
Jason Walls breaks down the “Brexit”. With special audio feature.
UK Prime Minister David Cameron’s announcement the referendum on Britain leaving the European Union (EU) – the “Brexit” as it has become known – has attracted fierce debate.
Mr Cameron is firmly for Britain staying in the union, but London’s Mayor Boris Johnston came out in favour of the Brexit this week.
The discussion has now shifted to the economic implications.
The pound sterling is already at the lowest level against the US dollar since 2009 and is at a 14 month low against the Euro.
But this week, a Bloomberg survey found most economists estimate the pound could drop as low as $1.35 against the US dollar. This would be the lowest level seen since 1985.
Added to Europe’s economic concerns is business activity in the eurozone, with the PMI this week falling to a 13 month low.
The disappointing data "greatly increase the odds of more aggressive stimulus from the ECB in March," said Chris Williamson, chief economist at Markit.
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Fri, 26 Feb 2016
Fri, 26 Feb 2016
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Macroeconomic round up: the economic cost of the “Brexit”
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