The UK’s Economic Interests Are Not the Same as Those of Self-Interested Business Leaders

It is now common for Remainers to say that it is unsurprising that there has been no adverse effect on the economy after the referendum because Brexit hasn’t happened yet. Only when we actually leave the European Union, they assert, will adverse effects appear.

To put it politely, this is somewhat disingenuous. During the referendum campaign, the Treasury, the Bank of England, the Chancellor, the IMF and Uncle Tom Cobleigh and all suggested that there would be an immediate adverse effect from a Brexit vote. You may recall that asset prices were supposed to plunge, interest rates to rise and an emergency budget was going to clobber you where it hurts.

If you believed that the long-term consequences of Brexit would be severely negative then an adverse short-term impact might indeed be expected. After all, economic actors, especially those in financial markets, are supposed to look forward. In the event, as we now know, there was only a very transitory dip in confidence and asset values – and apparently no dip in spending.

The Telegraph

USD/CAD – Canadian Dollar Subdued as US, Canadian Markets Closed for Holidays

Week Ahead Pound Flash Crash Eclipses NFP

FOMC Minutes and Earnings Key This Week

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.