Brexit has cost UK economy £80bn - Bank of England
Gertjan Vlieghe, an external member of the central bank’s Monetary Policy Committee, said that, since the June 2016 vote, 2% has been shaved off GDP.
This, he said, amounts to a loss of around £800 million per week, or £40bn per year.
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Hide Ad“The analysis suggests that since the vote in June 2016, we have lost 2% of GDP relative to a scenario where there had been no significant domestic economic events.
“That amounts to around £40bn per year, or £800m per week of lost income for the country as a whole,” he told an audience in London.
The rate-setter pointed to a collapse in business investment into the UK, which has been stuck at zero, while in G7 peers it has accelerated to 6% a year.
“Firms have been saying in a number of surveys that the uncertainty about our future relationship with the EU is a source of concern for them that has been weighing on their investment spending, as plans for expansion have, on average, been scaled back,” Mr Vlieghe said.
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Hide AdHe also warned that interest rates are more likely to be cut than hiked if Britain crashes out of the European Union without a deal.
“In the case of a no-deal scenario, I judge that an easing or an extended pause in monetary policy is more likely to be the appropriate policy response than a tightening.”