Bank Of England Hasn't Found Any Reason To Worry Post-Brexit

One of the major arguments against Britain leaving the European Union was that it would result in a loss of business confidence and a reduction in investment activity and hiring.

The people of Britain nevertheless voted in late June to leave the European Union in the national "Brexit" referendum, and the country's stock market and currency immediately plunged given the now-uncertain economic future.

Despite the large degree of uncertainty, the Bank of England isn't worried — at least not yet. According to a report from Reuters, the central bank said in a report that it has yet to see any clear sign of a sharp economic slowdown or a trend of businesses cutting investments and hiring activities.

Uncertainty, Risk Still Major Concerns

The Bank of England's report did note that several companies are actively considering locations outside of the country for their business; other firms have said they will allocate larger investment dollars to operations within continental Europe.

Related Link: Is It Possible To Avoid The Next Brexit?

In addition, a poll conducted by Reuters among economist paints a dire outlook. The poll showed that economists saw on average a 60 percent chance the country's economy will undergo a recession in the coming year.

The Bank of England will meet on August 4, and the economists polled generally expect a rate cut to be announced at that time. A stimulus package, as well as a resumption of bond purchases and other measures to improve bank lending, could also be announced.

The generally upbeat report by the central bank helped boost the British pound higher by almost a cent against the U.S. dollar.

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