As the Bank of England downgrades its growth forecasts for 2019, the Confederation of British Industry’s (CBI) demands that no-deal is taken off the table. Anna Tobin reports
The Bank of England has downgraded its forecast for 2019 growth to 1.2%, this would be the slowest growth since 2009. Responding to this, the CBI’s chief economist Rain Newton-Smith, said: “It’s now crunch time – a no-deal scenario must be taken off the table because the economy is seizing up from uncertainty. The Bank’s forecasts, when put together with recent business surveys, illustrate the harmful impact on the economy the longer that this goes on.
“Brexit uncertainty has kept interest rates on hold this month, and the near-term outlook for the UK economy is also weaker. However, in the event of a smooth Brexit, the Bank expect a lift to economic growth and business investment further ahead, as greater clarity unlocks pent-up demand.”