S&P Sees Slowdown but No Recession for UK and Euro Zone After Brexit

Britain and the euro zone will avoid a recession but face slower economic growth as a result of the decision by British voters to leave the European Union, ratings agency Standard & Poor’s said on Wednesday.

“In short, the sky hasn’t fallen on either side of the Channel, contrary to concerns that the U.K. would soon fall into recession, precipitating a marked slowdown in the rest of the European Monetary Union,” Jean-Michel Six, S&P Global Ratings’ chief economist for Europe, said in a statement.

The Bank of England’s decision to expand its bond-buying programme had calmed the British gilt market and S&P expected the country’s housing market would have only a “soft landing” because of low interest rates.

Reuters

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Craig Erlam

Craig Erlam

Senior Market Analyst - UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a Market Analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam
Craig Erlam

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