US ratings agency out with a client note 29 June 2016
- UK to face large investment shock post-Brexit
- 2017 & 2018 GDP to fall to around 1%
- uncertainty to prompt firms to delay investment, hiring decisions
There is little doubt that the UK referendum vote in favour of leaving the EU will take a significant toll on the economy, Fitch Ratings says. Businesses are facing a surge in uncertainty on three separate fronts - the future of the UK's trading relationship with the EU, the shape of the regulatory framework, and domestic political uncertainty, including the future status of Scotland. This uncertainty will prompt firms to delay investment and hiring decisions, while elevated financial market volatility will further damage business confidence.
Full report hereMeanwhile GBP still underpinned albeit failing to make fresh gains from those posted earlier in the session GBPUSD 1.3405 EURGBP 0.8266