Stark warnings for troubling times ahead
In the week that both Governor Carney and Prime Minister May joint forces to echo the importance of free trade and labour movement in a post-Brexit era, today’s GDP figure for quarter 2 delivered a stark warning of the trouble that lies ahead for the UK. It comes as no coincidence that the last time the UK GDP figure read 1.5% (YOY) was almost 4 years ago in an economy that was moving away from the shadows of the 2008 financial crisis. A modern-day crisis now hangs over the UK economy even though Governor Carney signalled that monetary tightening would be initiated ‘in the coming months’. As growth continues to stagnate, the Bank of England’s call for an early rate hike may now seem premature with the UK economy entering an era of deep uncertainty after the 4th round of Brexit talks failed to deliver any real substance.
Anthony Kurukgy quoted in Reuters