BOE’s Broadbent Says Delay In Brexit Could Affect UK Economy

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According to analysts and economists, Britain may face a steep crisis if Brexit deal is further delayed beyond October 31, 2019. This is because most of the companies will hold their investments back. While speaking to the press, Ben Broadbent said that due to the looming factor of uncertainty over the Brexit deal the investment inside the country is suffering. He further said that the decrease in overall investment will hinder the economic growth of Britain. Ben Broadbent holds the position of deputy governor at the Bank of England.

Mr. Broadbent also said that if the present situation doesn’t get alleviated sooner, then it can cause havoc on the investment in the country. Ben Broadbent read the guidelines which are given by the Bank of England that the interest rates for the future only occur through a certain limit. Mr. Ben also said that it is unknown to him whether the interest rates will get decreased or increased by the British central bank at the time of no deal.

On the contrary, Governor Mark Carney said that a decrease in the rate of interest which will provide great aid to the economy during the time of no deal. When the media asked Mr. Broadbent that is he willing to be a candidate to succeed Mark Carney, he simply said that it is the hardest job to do. He also said that at the present moment he has to consider several things before he tries to take over that post.

The forecast provided by the bank showcased how investment rate is falling in the UK. The rate has gone down in consequently four different quarters. While speaking to the press, Mark Carney said that investment is the prime factor which boosts the economy of the United Kingdom. He further said that improper investment will cause economic shut down in the UK.

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