29 Dec 2015
UK: Brexit or no Brexit? – Goldman Sachs
FXStreet (Delhi) – Research Team at Goldman Sachs, suggests that following the votes in Scotland and Catalonia, the referendum on Great Britain’s membership to the European Union is likely taking place in 2016.
Key Quotes
“Our economists expect a victory for the ‘yes’ vote. That said, the uncertainty around this vote will become topical in the Spring and will likely affect US assets in a negative way. In rates space, we expect volatility to pick up and bonds to outperform as an asset class if the prospect of a ‘no’ vote becomes material. All else equal, the uncertainty of the economic consequences of a ‘no’ vote should weaken the economy and require an easier stance of monetary policy.”
Key Quotes
“Our economists expect a victory for the ‘yes’ vote. That said, the uncertainty around this vote will become topical in the Spring and will likely affect US assets in a negative way. In rates space, we expect volatility to pick up and bonds to outperform as an asset class if the prospect of a ‘no’ vote becomes material. All else equal, the uncertainty of the economic consequences of a ‘no’ vote should weaken the economy and require an easier stance of monetary policy.”