- Andy Haldane: ‘Very, very optimistic’ about the UK’s future
- Big companies ignore the challenges of leaving the EU and invest billions
- But Haldane warns that higher interest rates are negatively impacting the economy
The former chief economist at the Bank of England has announced that post-Brexit prospects are looking to improve amid evidence that Remain-supporting businesses are now “moving forward”.
Andy Haldane has said he is “very, very optimistic” about the UK’s future as major companies such as Nissan ignore the challenges of leaving the EU and invest billions in the country.
Haldane warned that rising interest rates are negatively impacting the economy as mortgage bills rise sharply and savings are quickly consumed.
But in an exclusive interview with The Mail on Sunday, he said the “dynamism, energy and progress” of many big companies offers real hope.
Until now, Haldane, who heads the Royal Society of Arts think tank, has been reluctant to talk about Brexit.
He was chief economist at the Bank of England during the 2016 referendum campaign. Many in the City were convinced he would be appointed to replace Mark Carney as the bank’s next governor.
At the time, Carney was accused of stoking “Project Fear” by warning of the damage leaving the EU would do.
“It has always been the case that with any change in the system there will be short-term costs as people adapt,” Haldane said. The lion’s share of these transition costs may now be beginning to dissipate. People adapt to the new world.
“It is very positive that companies are continuing their work and looking to new markets and new investments.”
US banking giant JP Morgan, whose chairman Jamie Dimon has been vocal about the perceived risks of a vote to leave the European Union, is among the companies that have become comfortable with the referendum result.
Speaking at the World Investment Summit last month, Dimon praised Britain’s “pro-growth” stance. He described the United Kingdom as “a source of stability for the world.” “You guys are doing a great job,” Damon announced.
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Japanese giant Nissan, whose Sunderland car plant is the largest in the UK, was among those to issue stark warnings about Brexit, but has since changed its tune. It confirmed a series of multi-billion pound investments in the plant’s future, and said in November that it had “adapted quickly” to Brexit, and the impact had been “minimal”.
“The car industry has been one of the most vocal industries about concerns about Brexit, and I think the fact that companies are already adapting and investing is very encouraging,” Haldane told the Mail on Sunday.
His intervention comes at a time when forecasts indicate that the UK economy is expected to witness a recession over the next year.
Haldane says he sees potential for economic revival in northern cities such as Liverpool, Sheffield and Sunderland. “I think there is huge potential in the UK economy.”
“We have some great businesses and we have some great people,” he says. “A lot of companies and a lot of places are full of potential.
“Right now, there has never been a more important time for us to do this when it comes to stimulating growth in this country.”
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