Gold price rebounds as Bank of England warns of No Deal Brexit disaster

London (Nov 29)  The price of gold shot up to £960.90 per ounce today following yesterday afternoon’s Bank of England statement, in which the BoE forecast the UK economy’s performance in the face of the various Brexit outcomes and warned of serious economic contraction with any ‘No Deal’ Brexit.

The Bank stated that the UK economy could be slightly better or worse off in the coming years with an EU deal passed through Parliament, but no deal would result in significant losses for the country – estimated at around 8% GDP within the first year after Brexit.

 

The chairman of the Bank of England, Mark Carney (seen above) gave a press conference shortly after the release of the forecasts, citing a rise in unemployment to 7.5%, inflation jumping to 6.5%, and house prices and commercial property prices plunging 30 and 48% respectively.

The news came less than a day after a cross-departmental report led by the Treasury indicated that even the best Brexit deal scenario would cost the UK economy £60 billion a year based on present data – a fact that Chancellor Philip Hammond confirmed live on BBC Radio 4’s Today programme.

 

John McDonnell, Labour’s Shadow Chancellor, told reporters: “The Bank has confirmed what other independent reports this week have been telling us: a No Deal Brexit could be even worse than the financial crisis of ten years ago”.

Not everyone is buying the Bank of England’s findings however, with many analysts and politicians arguing that the foundation of these statistics and forecasts is fundamentally wrong and based on less trade, rather than alternate trade.

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