Michael Saunders, the Bank of England interest-rate setter said, the long-term effects of Brexit could have a larger impact on companies than the coronavirus pandemic.
In an interview Saunders said, “Businesses will shake off the effect of COVID-19 as they’re temporary, but the long-term effects of Brexit could be more permanent.” BoE Governor Andrew Bailey said on Monday that a no-deal Brexit would cause longer-term damage to Britain’s economy than the pandemic, and the impact of the change might be felt for many years. Britain and the Britain Union are still negotiating a trade agreement ahead of the Dec. 31 expiry of a post-Brexit transition period.
According to Saunders Britain’s economy was unlikely to fall into a recession. He said, “It’s not worth getting too worried about recession at the moment. We had a big recovery in Q3 and there will be a dip in Q4 – but we’re only forecasting a contraction of around 2%.”