Home Business NewsBusiness Brexit delays could turn UK into ‘zombie member’ of the EU, warns HSBC

Brexit delays could turn UK into ‘zombie member’ of the EU, warns HSBC

12th Jul 16 11:13 am

Brexit debacle continues


Source: PYMCA/Photoshot

Delays to enact on Britain’s vote to leave the EU will make Britain a zombie, HSBC’s chief economist Stephen King has warned.

In a presentation to clients, King said: “The problem is if the rest of the EU treats us as a zombie member, the living dead, [as if we are] there but not really there, the person who has turned up to the party but was not on the guest list.

“They [other leaders] recognise there are pressures within their own economies and political environments to try to shift the argument to a more populist [agenda].

“It is tricky – do they try to punish the UK, or does that advertise to their own people that the EU has become more of a straightjacket than an opportunity for more trading?

“It is definitely not Armageddon, but it is a story about uncertainty,” he said, noting that “uncertainty is the kind of thing which delays business decisions.”

Speaking about interest rates, King predicted that the Bank of England might install a 0.25 percentage point interest cut this month or next month.

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