Well, the true cost of Brexit is becoming a tough pill to swallow day by day. We are simply astonished that people actually thought it was a good idea to Brexit and consider a no deal possibility, surely it would have been wise to advocate a quit of EEA and a remain in the EFTA, much like Norway, this would have been a better prospect to sell markets. Instead, in the face of what was a chaotic scenario, they sold the so called “Hard Brexit”. Well, I don’t see it folks, it looks like it will be a soft landing. So now Britain looks like a country with weak leadership, uncertain prospects and divided populations.
This has no doubt impacted the economic picture, GDP came in at 0.2% growth on the quarter lower than Greece, inflation was up to 2.9% from 2.7% but that is likely because the Pound dropped in value and we are a net importer. Sadly, the BoE chose to doctor a 6-3 vote, so 3 members believe we should raise rates,this supported the pound for now. Really? Does anyone believe that the UK would raise rates? I dare them! It appears that the true cost of Brexit will be in economic welfare, so brace yourselves for a tough road ahead and with the FED aiming for a 3% rate by 2020, I expect more devaluation in the future. As long as Austerity remains the focus of this parliament, then we would need to see monetary policy carrying the QE baton to maintain a balance.