Home Breaking RBS boss warns ‘very hard Brexit’ could trigger recession

RBS boss warns ‘very hard Brexit’ could trigger recession

by Purvai Dua
4th Oct 18 7:52 am

RBS chief executive Ross McEwan has warned a bad Brexit could force the UK economy into “zero or negative” economic growth, which would further hit the RBS share price.

RBS is still 64 per cent owned by the taxpayer following its bailout 10 years ago.

McEwan told the broadcaster: “We are assuming 1-1.5pc growth for next year but if we get a very hard Brexit then that could be zero or negative and that would affect our profitability and our share price.”

McEwan added that the bank was becoming more cautious with its lending to certain sectors of the economy – particularly retail and construction: “Big businesses are pausing, they are saying that in six months’ time I’ll have another look at the UK and I might come back, but if it’s really bad, I’ll invest elsewhere – that’s the reality of where we are today.”

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