Here’s BlackRock’s take on Brexit.
As per BlackRock, in the coming years, it is likely that Britain will face a recession and its growth rate trimmed by at least 0.5% point as a result of Brexit.
“Recession is now our base case,” said Richard Turnill, chief investment strategist at BlackRock, the world’s largest asset manager.
He went on to add that it’s likely that economic and political uncertainty will remain high once Britain leaves the European Union.
“There’s likely to be a significant reduction of investment in the UK,” said Turnill.
With Bank of England set to make interest rates to zero and expand its bond buying program, the Sterling could see a further slide; however it is likely to maintain its parity with the dollar, said BlackRock.
Last week, sterling hit its 31-year low of $1.2796 and was down by 15% since June 23, the day of the referendum.
Categories: Economy & Finance, Geopolitics, Strategy
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