No-deal Brexit could stoke UK inflation
- As Brexit politics grabs headlines, UK inflation is caught in the crossfire
- No-deal Brexit could sink pound by 10%, elevate inflation rate by 1%
- Nearly 25% of UK consumer goods are imported, could see price hikes
- Bank of England could be caught between raising and cutting interest rates
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The (dis)inflationary implications of Brexit
- Pound could slump 10% on no-deal Brexit, and rally 16% with a compromise
- UK inflation rate could rise by 1% if pound drops by 10%, and vice versa
- Change in inflation rate could kick in four months after the pound’s move
- A 16% pound rally could slash UK inflation to nearly zero within four months
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