Banks CANCEL recession forecasts: Backtracking ‘Remain’ banks now BACK Brexit Britain

LEADING investment banks have revised their predictions as good results for August shows the manufacturing and construction sectors are showing signs of recovery after Brexit slowdown.


Analysts at JP Morgan have backtracked on their Brexit predictions

Banks in the US and Switzerland have announced positive data following a better than expected turnaround in August.

In a shock u-turn, global banks Goldman Sachs, JP Morgan and Morgan Stanley as well as Swiss bank Credit Suissse now claim Britain will avoid recession

The banks have been bouyed by UK “resillience” after the uncertainty caused by the British EU referendum.

Each of the banks ploughed £1.25million to the Remain campaign, claiming Britain’s departure from the EU would lead to economic disaster.

Now they are being forced to revisit their predictions ahead of the triggering of Article 50.

Goldman SachsGETTY

Goldman Sachs donated £500,000 to the Remain campaign

In the foreign exchange markets sterling rose above $1.34 against the dollar for the first time since mid-July, having fallen to its worst rate in more than a decade immediately after the Brexit vote.

The Bank of England moved to create stimulus in August, including its first rate cut in seven year.


Since leaving the EU, Britain has not plunged into recession as ‘Project Fear’ claimed

Goldman Sachs donated £500,000 to the Remain campaign.

But now analysts at the same bank have raised their growth forecast for 2017 after previously claiming that the UK would “enter a mild recession by early 2017”.

Goldman Sachs economist Huw Pill now claims: “The downturn in the UK – while still substantial – is likely to be shallower than we thought in the immediate aftermath of the referendum.”

Although bankers at Credit Suisse also had more positive news for the British economy ahead of article 50.

Pound dollarGETTY

The pound is stronger against the dollar following Brexit than analysts predicted

In January, the Swiss bank had claimed: “If the UK votes to leave the EU, it is likely to entail an immediate and simultaneous economic and financial shock for the UK.”

However now after the intitial shock to foreign exhange markets, Credit Suisse states: “The impact of the UK’s vote to leave the EU on the UK economy seems to be materially less negative than we expected.”

Similar to the response from JP Morgan, whose chief executive Jamie Dimon said pre-referendum: “Brexit is a terrible deal for the British economy and jobs.”

But now the bank states: “The rebound in August takes out the risk of recession.”

Data released earlier this week saw a return in the service sector.

David Davis, minister of the Exiting the European Union says he is in a “position of strength” ahead of plans to exiting the failing European administration.

The pound has continued to rise for a five day run against the dollar, not seen since the first quarter of 2016.

Ukip MP Douglas Carswell said: “The hysteria of these bankers reminds us what terrible judgment our elites have. They were wrong about Brexit.

“They were wrong about ending boom and bust. Their judgment is almost as bad as George Osborne’s, but unlike Osborne these corporate bankers are still there.”

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