The UK finance chiefs are saying that Brexit will unavoidably weaken the economy and that the process will hurt, according to a report in The Guardian. The best that can be done, according to Bank of England Governor Mark Carney, is for the Bank to balance the painful impact between job losses and higher prices.
Carney and Chancellor Philip Hammond, who heads the UK’s Treasury, both gave speeches on Tuesday at Mansion House to assure the public on their preparations to cushion the effects of Brexit. Carney also put interest rates on hold and said that it’s more prudent to do so while observing how the effects of Brexit will play out. He also cited weak wage growth as another reason not to raise rates.
Given all that, Carney warned against protectionism, saying trade barriers at this time would only hinder prosperity and result in more inflation and job losses. Carney called for a transitional deal before 2019 when the UK fully exits the European Union. Such a deal, ideally, would guarantee economic protections for the UK once it leaves the single market.
Chancellor Hammond for his part called for a four-pronged process to facilitate a soft Brexit that will ease the country out of the EU gradually. It’s a transitional situation like that described in an Independent opinion piece. However, the editorial also doubts 21 months are enough to close the deal, recommending that the UK ask for an extension.
Hammond’s four proposals include a comprehensive trade and services agreement, a mutually beneficial transitional deal with the EU, working out smooth customs arrangements and maintaining present customs rules during an interim until new rules are created and enforced.
These four proposals, Hammond said, are meant to avert unnecessary disruptions to the economy and ensure the country’s future as it enters into new partnerships with neighbors in Europe.
Digital Twins Are Big in Industry, but What About the Metaverse?
While digital twins are a concept that is already well known and understood in industrial applications, familiarity with digital twins...
Spanish Government Allocates 26M in High-Tech Equipment in Castilla-La Mancha
The Minister reminded that the Inveat Plan will involve an overall investment of more than $900.5 million (€795 million) throughout...
Artisans in Morroco Challenged by the Pandemic
Several projects, intended to mitigate the impact of the health crisis on artisans, are included in the Finance Act 2022....
The Talayuela Solar Plant Supplies 148,000 Homes in its First Year
The Talayuela plant, which has avoided the emission of 100,000 tons of CO2 into the atmosphere in its first year,...
Recrowd and Spezia Calcio to Promote Crowdfunding Campaigns Together
According to the agreement, Recrowd and Spezia Calcio will work together on the promotion of crowdfunding campaigns and will study...
Cannabis2 weeks ago
The Largest Legal Batch of Cannabis Was Shipped from South Africa to the EU
Africa2 weeks ago
Natural gas: the Moroccan Government is Called Upon to Review its Copy
Business2 weeks ago
Meta Abandons AR / VR “Reality OS” as Google Commences Work on its Own
Featured2 weeks ago
Credimi Closes €5.6M Round Underwritten by Some of its Existing Investors