When you’ve thought the wildest political mess is going in the US, but then the
Well Yes, Britain has voted to leave the European Union, results from Thursday’s landmark referendum showed, an outcome that sets the country on an uncertain path and deals the largest setback to European efforts to forge greater unity since World War Two.
World financial markets dived as nearly complete results showed a 51.8/48.2 percent split for leaving. Sterling suffered its biggest one-day fall of more than 10 percent against the dollar, hitting a 31-year low on market fears the decision will hit investment in the world’s 5th largest economy.
The vote will initiate at least two years of messy divorce proceedings with the EU, raise questions over London’s role as a global financial capital and put huge pressure on Prime Minister David Cameron to resign, though he pledged during the campaign to stay on whatever the result.
Here is what we thing will be the the top 5 ways, Britain’s decision of leaving European Union will affect your personal life.
1. Foreign Holidays
Two-thirds of all British people have their holidays in July and August, which are the most popular months for holidays. And now because the pound is worth less, travelling abroad will become more expensive.
Now that the country has voted for Brexit, immigration will be one of the big issues in the divorce negotiations. According to a report by “The Independent” newspaper, Immigration status is likely to remain unchanged during next two years.
Companies across the 19-nation euro area were bracing for the outcome of a British referendum that was held yesterday. And now as the results are out and 52% of the Britain voters have forced UK government to process divorce, decision to leave the EU has send shockwaves through the continent at a time when European Central Bank officials warn that their scope for reviving growth and inflation is limited without the help of governments.
According to us, As the pound weakens, imports will become more expensive, which will lead to higher inflation
4. Interest Rates
Today promises to be a bumpy ride in financial markets, now that voters in the United Kingdom have chosen to leave the European Union. Mortgage rates are likely to fall in coming days. In the longer run, the so-called Brexit could modestly slow the U.S. economy, An opinion at Bankrate.com shows.
But, we believe, To fight inflation, Bank of England may raise the interest rates, making mortgages and loans more expensive to repay.
As the Brexit sends FTSE 100 into freefall amid recession fears, The Market volatility caused by a Brexit could last for years. After Britain voted to leave the European Union, the UK’s leading stock index has immediately plunged 8.3%, and the pound is in freefall.
Now its a fear, that, if companies think of moving money out of Britain, confidence in the economy will fall….Which will negatively affect investment and hiring.