Couple of positive outcomes from Brexit could be :
1. Lower interest rates – BOE has $250 bln on standby to ensure liquidity in the markets. Potential tightening of liquidity in the markets could be a good reason for Fed Reserve of US to keep rates lower for longer as well. Our own RBNZ could now have some more reasons to lower. Next RBNZ MPS and OCR to be 11th of August.
2. Trade opportunities – the agreements we have with EU are many decades old. EU could look outside UK for trade to ensure an example is set to deter more exits. NZ could be a benefactor with both EU and UK. We expect UK to also look outside of EU for certain trading activity as well.
This article has been written by Hamish Patel, mortgage broker with mortgagesonline.co.nz. Ph: 09 625 4693, Mobile: 021 625 693, hamish@monline.co.nz
