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.
Why is the stock market up?
A global pandemic. The President impeached. Raging wildfires across the west coast. Riots throughout major cities. The Olympics cancelled. The...
The biotech sector in Bavaria has strongly developed over the last years
Bavaria has been able to establish itself as a location for biotechnology and innovation in recent decades. However, at an...
How the coronavirus pandemic impacted the German Fintech sector
The coronavirus pandemic has clearly affected the Fintech sector in Germany. However, some of the companies that are currently struggling,...
What’s the problem with the Dow Jones? Maybe it’s overvalued
So far, the Dow Jones has yet to exceed the high of its current advance on August 3rd. Who knows...
Fruitbox Africa: Frankfurt investor and Siemens to create jobs in Ethiopia
The Frankfurt investor Lutz Hartmann and the technology giant Siemens want to invest in Ethiopia. Creating jobs, training young people,...
Featured5 days ago
Qonto registered over €900 million value of transactions on Italian current accounts
Cannabis6 days ago
Cannabis light company to sponsor Italian soccer league teams
Crypto6 days ago
Why are Ethereum fees higher than Bitcoin ones?
Business6 days ago
XRApplied sitting pretty on the precipice of the XR boom