BoE: No-deal Brexit could hit UK GDP, pound sterling

Thursday, 17. December 2020 15:33

The Bank of England's (BoE) Monetary Policy Committee warned on Thursday the no-deal Brexit could negatively affect the recovery of the United Kingdom's economy from the crisis caused by the coronavirus pandemic, as well as the pound sterling.

"In the event that those trade negotiations [between Britain and the European Union] did not reach an agreement, the exchange rate would probably fall and, relative to the projections in the November Report, CPI [Consumer Price Index] inflation would be likely to be higher and GDP [gross domestic product] growth weaker," the committee's latest report read.

Earlier in the day, British Prime Minister Boris Johnson's spokesman stated a no-deal scenario was still the "most likely" outcome. On the other hand, the EU's chief negotiator Michael Barnier reportedly claimed an agreement between London and Brussels could be reached by Friday.

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Breaking the News / JR