Brexit could cost UK £100bn – Investec

Research Team at Investec, notes that the report commissioned by the CBI and carried out by accountancy firm PwC, warns a Brexit could potentially cost the country £100bn and nearly one million jobs by 2020.

Key Quotes

“This morning's news reports are focusing both on the resignation of Work and Pension's secretary Iain Duncan Smith (and the impact on David Cameron and his cabinet) over forced Tory cuts to disability benefits, and reports from the CBI that a UK exit from the EU would cause a "serious economic shock".

The business lobby group said the study found that a vote to leave would have "negative echoes" lasting many years. The CBI had said it would not align itself with either side of the debate but, following the result of the survey, has set out the economic case for Britain staying within the EU.

In currency markets these news headlines appear to be dragging on the Pound this morning. Starting the week back up in the 1.44 handle against the US Dollar after the BoE did not discuss cutting interest rates at last week's central bank meeting, and the Fed weakened the greenback by reducing their forecasts for US rate hikes this year. This lowering of their 'dot plot' of expectations puzzled many as US inflationary pressures continue to show through while employment remains in the Fed's long run target range.”