The British Chambers of Commerce has downgraded its UK growth forecasts as the national body predicts GDP values to come in at 1.80% in 2016 from initial estimates of 2.20%, 1.00% in 2017 from 2.30% and 1.80% in 2018 from 2.40%. The BCC comes in the wake after the UK has voted to leave the European Union in its June 23rd referendum. The main reason of the cutback in growth was expressed to be the slowdown in business investment as well as a decline in domestic spending even if the UK has not yet triggered the process of an exit. The Bank of England following on the referendum predicts a slowdown in growth and a surging inflation rate mostly weighed on the weakness of the sterling pound. On the heels of the downgrade, the pound dropped to 105.07 against the Japanese Yen.
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Daily Analysis - 13/09/2016