UK To Enter Mild Recession: BAML

Following the Brexit verdict, Bank of America Merrill Lynch analysts knocked 2.5ppt off their growth forecast for the UK for the next 12 months and said they anticipate that the UK will witness a mild recession lasting three quarters. Robert Wood and Gilles Moec said in their June 24 research piece titled “Hello recession” that they believe the UK’s accepting a “Norway”-style deal won’t happen quickly. UK’s policy maneuver is limited The BAML analysts question what the geographical boundaries of the UK will look like in a few years. They believe the UK has to grapple with a period of heightened uncertainty emanating…