With an astonishing 14% drop in share prices in the days following the Brexit vote, we now see continued recovery – last week the FTSE 100 and FTSE 250 saw record year highs. Conversely, the pound tumbled and UK gilt yields dropped after the Bank of England surprised markets with the terms of its stimulus package for the UK.
With a cut to interest rates to 0.25% and a possible further reduction, it will undoubtedly have an effect on businesses and employees alike. Whilst the weakening of the pound should help the UK export market, it will also certainly have an impact on strategies across treasury, risk and finance departments.
This package is designed to boost the economy and prevent a recession following the vote to leave the EU, but only time will tell if this has the desired outcome. In the meantime, such developments and changes will keep group functions on their toes!
For utmost stability, stakeholders need consistent communication throughout this period, to foster transparency, trust and confidence – we can certainly help provide additional resource for all internal and external communications, providing flexibility, efficiency, added value through corporate insight and creativity that provokes a reaction.
