The market turmoil that followed this morning’s referendum result, followed by the immediate political aftershocks, will not be the only potholes in the road to life outside the European Union (EU), claims British Independent Retailers Association (bira).
In the aftermath of the British public’s vote to leave the EU, bira ceo Alan Hawkins commented: “Consumers, and the retailers that serve them, need to be given as much confidence as possible from now until the agreement for the UK to leave the EU is signed, sealed and delivered. That means laying out predictable timetables and sticking to them.”
He added that he was watchful of the likelihood of interest rate changes. A further fall was possible if the Bank of England became concerned about a developing recession, he said, but increases could follow if inflation grew too quickly. That could dampen the national housing market, which might be relatively welcome in the overheating London market, but could also weaken prospects for retail sectors ranging from carpets and furniture to hardware and housewares, he said.
Alan Hawkins concluded: “Whatever we thought about Brexit yesterday, and members were evenly split on the issue, we are where we are today. We call on the government to do everything it can to make sure that calm and stability reign in the difficult run-up to the final exit.”