Global banks slash chance of Brexit ‘no deal’ and raise UK growth forecasts

The likelihood of the Government failing to reach a Brexit deal is plummeting, which should reduce the risk facing the economy and inject more confidence into businesses and investors, according to analysts at leading global banks JP Morgan and UBS.

UBS Wealth Management said “the progress made on Brexit negotiations will likely have lessened uncertainty” for business investment and hiring, as “the UK looks set to enter a transition agreement” in which “little should change operationally for most firms”.

By moving away from a ‘no deal’ scenario, economist Dean Turner believes the risks to economic growth are diminishing, improving the outlook for the UK.

“Unquestionably, uncertainty about a final agreement will linger, so we consider it too early for a rebound of business investment,” he said. “Still, the threat of a sharp near-term slowdown should diminish.”

This indicates the current patch of economic resilience in the UK may continue.

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