Bank of England publishes its latest insights into the economic impact of Brexit on British real productivity, capital investment, and labor supply.

Olivia London

2018-12-03 10:40:00 Mon ET

Bank of England publishes its latest insights into the economic impact of Brexit on British real productivity, capital investment, and labor supply as of 2018Q4. With a cautious tone, the U.K. central bank suggests that its future interest rate decisions would depend on the trade terms of the U.K. departure from the European Union. With Brexit, economic policy uncertainty weighs on U.K. productivity and economic growth, and future lower immigration may adversely affect British labor supply and real macro performance.

Brexit imposes financial constraints on both capital investment and labor supply that may reinforce the current economic slowdown in the U.K. in light of the neutral interest rate at which the British economy grows without much inflationary pressure. Bank of England Governor Mark Carney acknowledges the brutal fact that Britain is not fully prepared for a cliff-edge Brexit. Carney predicts that the U.K. economy may shrink by 8% in mid-2019 in the worse-case scenario where Britain leaves the European Union free trade bloc with no deal and no transition period to smooth the arcane process. When push comes to shove, the law of inadvertent consequences counsels caution.

 


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More

Central banks in India, Thailand, and New Zealand lower their interest rates in response to the Federal Reserve rate cut.

Daisy Harvey

2019-09-11 09:31:00 Wednesday ET

Central banks in India, Thailand, and New Zealand lower their interest rates in response to the Federal Reserve rate cut.

Central banks in India, Thailand, and New Zealand lower their interest rates in a defensive response to the Federal Reserve recent rate cut. The central ban

+See More

Sirius XM pays $3.5 billion shares to acquire the music app company Pandora.

Jonah Whanau

2018-09-25 10:35:00 Tuesday ET

Sirius XM pays $3.5 billion shares to acquire the music app company Pandora.

Sirius XM pays $3.5 billion shares to acquire the music app company Pandora. This acquisition would form the largest audio entertainment company worldwide.

+See More

College education offers a hefty 8.8% pay premium for each marginal increase in the number of years of intellectual attainment.

Fiona Sydney

2018-04-29 13:44:00 Sunday ET

College education offers a hefty 8.8% pay premium for each marginal increase in the number of years of intellectual attainment.

College education offers a hefty 8.8% pay premium for each marginal increase in the number of years of intellectual attainment in contrast to the 5.6%-6% lo

+See More

America faces income inequality, political polarization, and dysfunctional governance.

Rose Prince

2018-05-17 07:41:00 Thursday ET

America faces income inequality, political polarization, and dysfunctional governance.

Has America become a democratic free land of crumbling infrastructure, galloping income inequality, bitter political polarization, and dysfunctional governa

+See More

Michael Kors pays $2.3 billion to acquire the Italian elite fashion brand Versace.

Joseph Corr

2018-09-27 11:41:00 Thursday ET

Michael Kors pays $2.3 billion to acquire the Italian elite fashion brand Versace.

Michael Kors pays $2.3 billion to acquire the Italian elite fashion brand Versace. In accordance with Michael Kors's 5-year plan, the joint company grow

+See More

U.S. Treasury's proposal for financial deregulation aims to remove key aspects of the Dodd-Frank Act.

Rose Prince

2017-08-25 13:36:00 Friday ET

U.S. Treasury's proposal for financial deregulation aims to remove key aspects of the Dodd-Frank Act.

The U.S. Treasury's June 2017 grand proposal for financial deregulation aims to remove several aspects of the Dodd-Frank Act 2010 such as annual macro s

+See More