One statement from the BoE
In yet more confusing news for Brits there have been two conflicting stories regarding Brexit released by the papers today. In one camp we have Bank of England governor Mark Carney acknowledging that the UK’s divorce from the EU may yet proceed smoothly.
Speaking to the Commons Treasury Select Committee, Mr Carney said:
“There are scenarios where this process proceeds relatively smoothly to an increasingly clear end point and that will be consistent with a higher path for interest rates.”
It shouldn’t be forgotten that Mr Carney was heavily criticised over the Bank’s warnings about how the Brexit vote might weigh on the economy – which has responded more robustly than expected.
And another statement from the EU
In the other camp we have European Commission President Jean-Claude Juncker warning us that Britain will be landed with a “very hefty bill” to get out of the EU exit door. Mr Juncker also said that a trade deal with the EU would take years – indicating it would be significantly longer than the two years Theresa May had promised. He said the UK would not walk away from the EU without paying a penny and would need to pay its share of EU spending already agreed to during its time as membership.
Speaking on Tuesday, Mr Juncker said:
“The British should know this, they know this already, that it will not be at a discount or at zero cost. The British must respect commitments they were involved in making. So the bill will be, to put it a bit crudely, very hefty.”
I’m personally getting tired of hearing doom and gloom from one expert and then hearing everything will be rosy from another. It would appear that no-one really knows what the full outcome from Brexit will be until the process is finally completed several years down the line. The only thing we can be sure of is that the news will be full of these stories for a long time to come yet.