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.
Prim’s first quarter 2021 revenue down 3.1% to €37.2 million
The Spanish biotech company Prim has recently published its first quarter financial results. The company has reduced its revenues by...
U.S. rice investments in Burkina Faso to strengthen food security
U.S. has partnered with the Neema Agricole du Faso (NAFASO) company in Burkina, by awarding $1 million. As part of...
Accenture: sustainability is the new pillar of banking transformation
The Accenture Banking Conference highlighted how a focus on sustainability will need to go hand-in-hand with digitization, further driving the...
Fintech scandal: Exporo kicks out Upvest and switches to Tangany
What is a coup for Tangany could become a problem for Upvest. The Berlin-based fintech company says it manages $182...
Bitcoin’s price bounces off the resistance zone again
Beyond any imagination and contrary to the fundamental events of the past year, it is still possible from a chart...
Business6 days ago
Three ways companies can leverage VR to innovate during a pandemic
Cannabis5 days ago
Safe access to medical cannabis in Entre Rios is law
Featured4 days ago
After authorizations, the consolidation of the fintech sector in Mexico will follow
Crowdfunding4 days ago
Vamos que Vamos, Uruguay’s first crowdfunding platform, was launched