Brexit dis­tract­ing UK

Iran Daily - - Global Economy -

“Brexit has ab­sorbed a lot of en­ergy ... not just in gov­ern­ment but among com­pa­nies as well. That has prob­a­bly come at some cost,” he said dur­ing a dis­cus­sion that formed part of the city’s an­nual Fes­ti­val of Ideas.

“The plans of gov­ern­ment, the plans of com­pa­nies have to some ex­tent been put on a back­burner by dint of hav­ing to deal with Brexit. Now the hope would be that once the Brexit deal is done, fin­gers crossed, those projects that were put on the back­burner (...are) de­liv­ered on,” he added.

Chan­cel­lor of the Ex­che­quer Philip Ham­mond has said he ex­pects weak busi­ness in­vest­ment to get a boost once the gov­ern­ment agrees tran­si­tional ar­range­ments to deal with the coun­try’s de­par­ture from the Eu­ro­pean Union in less than five months’ time.

Eco­nomic data out ear­lier on Fri­day showed a sharp fall in busi­ness in­vest­ment dur­ing the three months to Septem­ber.

Bri­tain’s gov­ern­ment ap­pointed Hal­dane last month to lead a gov­ern­ment task­force on im­prov­ing pro­duc­tiv­ity.

The Boe’s chief econ­o­mist did not dis­cuss the im­me­di­ate out­look for mon­e­tary pol­icy dur­ing the event, but re­it­er­ated that he be­lieved fur­ther quan­ti­ta­tive eas­ing bond pur­chases would still be able to boost the econ­omy if needed.

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