James Knightley, CEO at Hampshire Trust Bank, stated in reports yesterday that the UK’s small to medium enterprises (SMEs) are stockpiling cash of more than £230,000 on average in current accounts, in order to mitigate risks from a volatile economy, should the UK decide to leave the EU in a “Brexit.” By the end of 2017, Britons will cast their votes on whether the UK should remain a part of the EU or separate from it. Mark Sismey-Durrant, Senior Economist at ING, warned that the UK could face two years of uncertainty anyway, which may lead to a reduction in foreign investors, downward pressure on sterling, and a cautious approach by the Bank of England to raising interest rates. UK GDP growth in 2017 could also be half a point down, whilst the impact on businesses is hard to quantify at the moment. On the other hand, if the UK negotiates a stronger deal with the EU and stays in, growth of 3.5%+ in 2018 is a possibility, Mr Knightley has suggested.
Mark Sismey-Durrant, CEO at Hampshire Trust Bank, stated in reports yesterday that the UK’s small to medium enterprises (SMEs) are stockpiling cash of more than £230,000 on average in current accounts, in order to mitigate risks from a volatile economy, should the UK decide to leave the EU in a “Brexit.” By the end of 2017, Britons will cast their votes on whether the UK should remain a part of the EU or separate from it. James Knightley, Senior Economist at ING, warned that the UK could face two years of uncertainty anyway, which may lead to a reduction in foreign investors, downward pressure on sterling, and a cautious approach by the Bank of England to raising interest rates. UK GDP growth in 2017 could also be half a point down, whilst the impact on businesses is hard to quantify at the moment. On the other hand, if the UK negotiates a stronger deal with the EU and stays in, growth of 3.5%+ in 2018 is a possibility, Mr Knightley has suggested.