The UK’s vote to leave the EU continues to cast a large shadow over the political and economic spheres. This week saw David Cameron formally step down as prime minister to allow Theresa May to take his place. In her maiden speech, Mrs May alluded to the challenges ahead:
“We are living through an important moment in our country’s history. Following the referendum we face a time of great national change.
“As we leave the European Union, we will forge a bold, new positive role for ourselves in the world.”
Here is a round-up of some of the top Brexit–related stories this week.
No Emergency Budget
Newly appointed Chancellor Philip Hammond has said that he did not anticipate the need for an emergency ‘Brexit’ budget as a result of the leave vote.
However, he added that there has been a ‘chilling effect’ on financial markets and that the UK would face challenges in managing the economy.
Secretary of State for Exiting the EU
David Davis has been appointed as the secretary of state for exiting the EU. Davis has previously held positions of party chairman for the Conservative party and shadow duty prime minister.
Details on Brexit are still emerging but Davis will be responsible for leading negotiations in UK’s departure from the EU.
Interest Rates Held at 0.5%
Despite speculation to cut down interest rates, the Bank of England (BoE) has held interest rates at 0.5%. Rates have remained on hold since cutting down to the record low of 0.5% in March 2009.
The BoE has commented that the precise size and nature of any stimulatory measures will be “determined during the August forecast and inflation report round.”
Housing Market Weakens
The housing market fell at its sharpest rate with buy-to-let hitting an 8 year low.
The Royal Institution of Charted Surveyors reports that 27% of surveyors are expecting housing prices to fall in the next 3 months. 36% reported buy-to-let fallings, the most negative since 2008.