UK Economics

Brexit polarises the outlook for interest rates

UK Economics Weekly
Written by Capital Economics Economist

The Bank of England’s harrowing assessment of the consequences of a no deal Brexit grabbed the headlines this week. But it was designed to be an extreme scenario, and based on some implausible assumptions. The Bank’s projections based on a deal being struck were perhaps more informative, and chimed with our forecast for growth to rebound and interest rates to rise further than investors expect next year.