Though it caused something of a political storm, we learned little from the evidence that Mark Carney and Sir Jon Cunliffe gave to the Treasury Select Committee on Brexit. Our modelling, which was published earlier this week, suggests that the short-term impact of Brexit would be noticeable, but far from catastrophic, and that it should be manageable for policymakers.The weeks data helped to allay fears about the extent of the recent slowdown in activity and Q1 should see GDP growth close to Q4s rate of 0.5%. The more stable picture presented by the economic data has been mirrored in financial markets, with the initial hysteria caused by the referendum announcement having seemingly now passed.
