BoE Deputy Governor Ben Broadbent warned that further Brexit delays beyond October 31. risks greater damage to the economy. He said “it’s pretty clear that investment has been feeling the consequences of the uncertainty about Brexit and particularly the possibility of a bad outcome”.
He warned, “if you continually expect news to arrive imminently – a resolution – then that can have quite a depressing effect on investment”. And, persistent depression on investment is clearly bad for the economy as “we rely on investment for making us collectively more productive and better off.
Instead, a Brexit deal would lead to “quite a strong bounce-back in investment.” “There would be quite a strong bounce-back in investment,” he said. “These are not cancelled projects – it’s delay. If, as a business person, you’re assured that the worst thing is suddenly off the table, that has quite a powerful effect on your incentive to invest.”
