Schulz: Brexit a Risk for U.K., European, Global Economy

The UK economy is facing challenges, with PMI data indicating uncertainty affecting economic sentiment. While some Eurozone data is strong, the UK remains at risk. The Bank of England may need to act, possibly with a rate cut. Financial markets initially reacted sharply but stabilized, aided by central bank communications. The future outlook depends on further data and economic developments.

What was the general expectation regarding the impact of uncertainty on the UK economy?

• It would improve economic sentiment.

• It would have no impact.

• It would have a significant impact.

• It would have a minor impact.

What is the Bank of England considering in response to the economic data?

• Introducing new taxes

• Increasing interest rates

• Maintaining current rates

• Implementing a rate cut

What was the initial reaction of the financial market to the economic uncertainty?

• It reacted sharply but then stabilized.

• It showed no reaction.

• It improved significantly.

• It remained stable.

What role did central banks play during the period of uncertainty?

• They took no action.

• They increased interest rates.

• They provided reassurance through words.

• They introduced new financial regulations.

What effect did the appointment of a new UK Prime Minister have on the financial markets?

• Increased uncertainty

• Caused a market crash

• No effect

• Decreased uncertainty