Confidence effect of Brexit would be bigger than direct impact: ECB's Mersch
Tweet
Share
E-mail
Yves Mersch, Member of the Executive Board of the European Central Bank presents an oversized newly unveiled 10 euro note at the headquarters of the European Central Bank (ECB) in Frankfurt, January 13, 2014. REUTERS/Ralph Orlowski
FRANKFURT (Reuters) - The direct impact of Britain's potential exit from the European Union appears manageable but unpredictable factors, like the impact on economic confidence, could be more significant, European Central Bank board member Yves Mersch said on Tuesday.
"While the quantifiable (impact of Brexit) could be, I would say, digested in a pure macroeconomic modeling terms, there will be also confidence factors," Mersch told a business conference.
"What we can’t foresee is also creating uncertainty and uncertainty will affect the overall business outlook and will have larger consequences than the direct impact," Mersch added.
(Reporting by Balazs Koranyi; Editing by Francesco Canepa)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Germany at risk of violent conflict with Russia, intel chief says
- Panmure Liberum forecasts S&P 500 falling to 5,000, warns bull run nearing end
- Key central bankers to meet in Istanbul to discuss global policy challenges
Create E-mail Alert Related Categories
ReutersRelated Entities
European Central BankSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
