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.


EUR/USD – Euro Unchanged, German CPI Next

Central Bankers, OPEC and Data all Feature Today

More UK Stimulus Probably Needed ‘at Some Point’: BoE’s Shafik

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.