According to analysts at Westpac, the past week has been high on drama for the UK economy, with three Brexit votes in Parliament.
Key Quotes
“First, Prime Minister May’s deal was voted down for a second time. Then a ‘no deal’ Brexit was precluded by the second vote. And finally via the third vote, scope for an extension of the Article 50 negotiation period was approved.”
“While the second and third votes are positive steps, they do not narrow the divide between the various political factions. Indeed, the potential length of the extension is particularly divisive. If PM May’s agreement is successful, Parliament have agreed on an extension to 30 June.”
“But, if unsuccessful, uncertainty is set to remain rife as the extension date for this scenario was not made absolute by the third vote. It is likely that the EU will push for as lengthy a negotiation period as possible. In our view, this is the best that can be hoped for, in order to allow perspective and time for fruitful discussions.”
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