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Brexit could affect economy for longer than COVID - BoE's Saunders

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Brexit could affect economy for longer than COVID - BoE's Saunders



FILE PHOTO: A person is silhouetted as he walks past The Bank of England, amid the outbreak of the coronavirus disease (COVID-19), in London, Britain, November 5, 2020. REUTERS/John Sibley


LONDON (Reuters) - Bank of England interest-rate setter Michael Saunders said the long-term effects of Brexit could have a bigger impact on companies than the coronavirus pandemic.


“Businesses will shake off the effect of COVID-19 as they’re temporary, but the long-term effects of Brexit could be more permanent,” Saunders said in an interview with TheBusinessDesk.com website.


BoE Governor Andrew Bailey said on Monday that a no-deal Brexit would cause longer-term damage to Britain’s economy than the pandemic, and the impact of the change might be felt for decades.


Britain and the European Union are still negotiating a trade agreement ahead of the Dec. 31 expiry of a post-Brexit transition period.


Saunders also said Britain’s economy was unlikely to fall into a recession.


“It’s not worth getting too worried about recession at the moment. We had a big recovery in Q3 and there will be a dip in Q4 – but we’re only forecasting a contraction of around 2%,” he said.



-- © Copyright Reuters 2020-11-25
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Yes but its a small price to pay for sovereignty (we never lost it in the first place), taking back control (control of what?), making our own trade deals around the world (by basically copying the tr

Fear not Loiner and Laughing Gravy will be along shortly to reassure us they don’t know what they’re talking about 😂

Go back and check how much cash the BoE injected into the economy to offset the impacts they predicted.    

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3 minutes ago, Chomper Higgot said:

All that hangs on your hope that ‘could’ doesn’t turn into ‘does’.


Presumably you have sight of the data the BoE are using as the basis of their predictions?





Nearly all of the BOE Project Fear post Brexit predictions have been proved false.


History is a great predictor of the future. Hence I shall be ignoring these guesses from the salaryman.

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22 minutes ago, placeholder said:

It's a universally observed economic phenomenon that the closer countries are to each other the more they will trade with each other. However, this will not be the case with the UK which will negotiate new deals with distant nations to replace trade lost with the EU because Brexit is magical!!!

We'll get a deal with the EU. It might take a few years but eventually they'll stop sulking like a dumped teenage girl. They just need to grow up a bit. Time is a great healer.


In the meantime, are you aware that it's possible to trade without an FTA?

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