Brexit had ‘less impact’ than expected: NAB

Killian Plastow
— 1 minute read

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




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

related articles

  • Bendigo Bank launches $300m raise as profit plunges

    Bendigo and Adelaide Bank has opened a $300 million capital raise as the company has recorded a 28.2 per cent drop in profit year-on-year fo...

  • APAC braces for virus hit

    As the coronavirus death toll climbs, economies throughout the Asia Pacific are preparing for an impact greater than that of SARS. ...

  • QBE takes climate hit

    QBE has recorded a surge in profits but drawn the ire of shareholders who believe it has failed to act on climate change risks as unusual we...

promoted stories

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.