The brand-new Brexit departure date of Halloween — which is usually likely to be the last deadline on offer to the U.K. — has not been lost on Brexit watchers.
“Brexit is usually currently, officially, a horror story,” Barr noted, adding which the brand-new departure date has removed any pressure on the Labour party to come to an agreement with May to ensure which a “no-deal” departure is usually avoided.
“The fact the ‘no deal’ deadline is usually currently more than six months away serves to remove any real sense of urgency from the near term,” Barr added.
A sense of calm also pervaded markets Thursday morning, sterling was a touch lower against the dollar (at $1.3088) in addition to the euro. London’s FTSE 100 index was trading lower. Daniel Lacalle, chief economist at Tressis Gestion, told CNBC Thursday which a delay means “very little” for investors from the U.K.
“The market right currently is usually rightly discounting an agreement which may take a little bit longer or a little bit less yet will ultimately happen,” he told CNBC’s “Squawk Box Europe.”
“If you look at the performance of the pound in addition to gilts (U.K. sovereign bonds) in particular, you are seeing which investors are quite comfortable with the current situation in addition to which the U.K. stock market is usually not affected by the challenges of Brexit.”
The British economy has so far proved more resilient than expected during the last two years of Brexit negotiations in addition to uncertainty over a future relationship. U.K. gross domestic product grew by 0.3% from the three months to February 2019, data Wednesday showed. yet economists question what effect the delayed departure could have on business investment.
“U.K. GDP growth will probably move sideways for a bit longer yet, perhaps averaging 1.5 percent This specific year,” Paul Dales, chief U.K. economist at Capital Economics said Thursday. “Of course, many developments could alter our forecasts, such as the state of the global economy, a change in prime minister, a general election, a change in government, a second referendum in addition to what actually happens with Brexit,” he said in a note.