Brexit had ‘less impact’ than expected: NAB

Brexit had ‘less impact’ than expected: NAB

The UK's decision to leave the European Union may have come as a shock to markets, but the effects of the decision do not appear to have been as severe as anticipated, says NAB.


In a statement to investors, NAB chief economist Alan Oster noted that after the initial reaction, global equity markets moved back up to their pre-referendum levels, and market volatility is now not only lower than it was prior to the vote, but is “very low by historical standards”.

“Bank lending surveys do not point to much impact of Brexit outside the UK either,” Mr Oster added, although globally, central bank action has “tended to disappoint” those hoping for action to address deflation or slow growth risks.

Monthly business surveys have also remained relatively stable, Mr Oster said, with “July readings not far off those in June, despite a big post-Brexit hit to UK business sentiment”.

“Activity was better maintained in services than in manufacturing in the big advanced economies and the former is by far the biggest sector in these economies,” Mr Oster said.

Nevertheless, the UK is expected to experience a recession, Mr Oster cautioned, which could have a knock-on effect on eurozone economies, following lower demand for European exports.

Read more:

November rate cut likely: AMP Capital

Platform share of non-super market to double

Pension changes to hit retirement adequacy

Commonwealth Bank posts $9.45 billion profit

IML expands small cap team

 

 

Related Articles

 

Brexit had ‘less impact’ than expected: NAB
investordaily image
ID logo
promoted stories

Appointments

Tania Cummin

Equip Super appoints strategy and markets executive

Staff Reporter

Paul Harding-Davis

Premium China Funds Management names new CEO

Jessica Yun

Matthew Wallis

Synchron appoints new state manager

Staff Reporter

Analysis

investordaily image

A correction, not a turning point

James Swanson

Martin Dropkin

Why bond covenants matter

Martin Dropkin

Maurizio Canton

Striking a balance between security and innovation

Maurizio Canton