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On June 23rd, the made a monumental decision to exit the . However, the magnitude of impact which the Brexit will have on the British economy remains uncertain. Following the vote, significant increases were predicted in the UK’s economic welfare and consumer confidence, although future statistics may indicate otherwise. After a week of collecting official data, the numbers forecast that consumers are spending more, the value of the pound has weakened, and tourism has increased in the UK. Simultaneously, interest rates have taken a historical cut, while inflation has begun to rise.
The Bank of England has since performed multiple tasks attempting to boost the economy of the UK. By , the Bank of England hopes to influence banks contemplating lower interest rates on households and businesses, as well as encourage investment and spending. In addition to the cut in interest rates, following the vote, the . Just over a year ago, the pound was worth $1.57 against the dollar, whereas a new study reflects a current worth of $1.30. In one year it has dropped 14% against the euro. The significant 17% fall in currency coincides with increased tourism in the UK. Cheaper sterling has boosted the tourism sector, and a recent study shows to the UK than in the previous year. Tourism is a crucial component of the UK’s economy, as it is the
Although the UK’s inflation rate of 0.6% remains relatively low, far below the Bank of England's targeted 2% rate, . Economists warn of an impending increase in prices, an effect of the falling value of the pound. The drop in the UK currency paves the way for more expensive imports, which eventually results in a cost increase to consumers.
Despite many uncertainties, it has been concluded the Brexit has drastically changed the UK’s economy, and will continue to do so in upcoming months.
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