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Pound to fall by 20 percent.
Published on 10.05.2016 22:24

 

The British pound is slightly higher today after experts warned that a decision for the UK to leave the Eurozone could see the pound fall by as much as 20 percent.

At 7.11pm (GMT) the British currency was trading at US $US1.4432c up from $US1.4405c in yesterday’s trade.

A report by the National Institute of Economic and Social Research (NIESR) noted that UK growth would come under serious pressure followed by declining wages after a Brexit.

They also expect the British pound to fall by 20 percent in the event that Britain chooses to leave the EU and that the pound would be on parity with the Euro not long after.

Dr Angus Armstrong from NIESR also brushed off the perception that closing the door on immigration would actually benefit the UK,

 “I don’t know of any study that says that reducing immigration is good for the economy. He said

“It might reduce demand for houses, but you won’t have anyone to build them.” He added.

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Andrew Masters

Analyst

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