LONDON – A new Bank of England survey suggests some businesses are freezing both investment and hiring in the aftermath of Britain's vote to leave the European Union, with broadly flat levels of spending in the next six months to a year.
The so-called agents' summary of business conditions revealed that in some sectors, such as commercial real estate, "all non-essential recruitment had been frozen." But the bank says businesses were more optimistic following the initial shock of the vote.
Allan Monks, economist at JP Morgan, says the report suggests an impact that over time "will still have significant adverse economic implications."
The Bank of England cut its key interest rate to a record low 0.25 percent after the vote, but another cut is possible this year.