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Brexit Beauty Is In The Eye Of The Beholder, Studies Show

Josh O'Neill

19 October 2017

Heads are clashing over the outlook for the UK economy once the nation divorces the European Union. 

For many, sometimes touted as pessimists, the future looks bleak. 

A new report from the (OECD), the inter-governmental consortium and think-tank, has claimed that reversing delivering a time-limited transition period, avoiding a disruptive cliff-edge exit from the EU, we can provide greater certainty for businesses up and down the UK, and across the European Union.”

Although Early Metrics' findings offers a more upbeat forecast, the study highlights that regulatory issues and the UK's membership to the single market will continue to cause concern as Britain exits the EU. 

The country's status as a member of the single market, which currently grants UK money managers “passporting” rights to freely offer services and serve clients across member states, has been called into question by negotiators across Europe. 

Investors and start-ups in the wealth management sector are worried about the loss of passporting rights, Early Metrics has said, and three-quarters of fintech start-ups are reliant on external technology to integrate payment solutions and access market data. 

Adding to this sense of uncertainty, the OECD's report has flagged that heightened price pressures will “choke off” private consumption, and that if the UK's credit rating tumbles this could lead to higher interest rates to entice lenders from other countries.