ABN Amro sees slower British growth
The economists at ABN Amro see 2016 relatively unchanged at 1.5% compared to 1.6 but a prolonged period of uncertainty will hurt 2017 growth badly. They now forecast growth at 0.5% next year compared to 2.5% previously.
They see a moderate recession hitting around the turn of the year as EU negotiations move slowly.
They expect the BOE to cut rates by 25 basis points and launch a new QE program including corporate bonds, equities and gilts.
The weakness will also spread into the Eurozone where they see growth in 2017 at 1% now compared to 1.6% before.