Confidence effect of Brexit would be bigger than direct impact: ECB's Mersch
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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)
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