The global markets fallout from the Brexit strengthened on Monday resulting in a battering of the global shares, which also gave rise to the prospect of a weaker global growth and period of low interest rates as well.
The Brexit or the British Exit from the European Union may spell a great change for the whole nation. The people of Britain recently voted that Britain should leave the European Union in a referendum on the 23rd June. This resulted in the reduction of pound to a lowest level since 1985 as David Cameron also resigned as Prime Minister of Britain. The main leader of Brexit, Boris Johnson also dropped out of the Tory leadership contest after Michael Gove removed his support. The Brexit vote has also called for a second Scottish independence referendum because the majority of the Scotts voted to be within the European Union .Ireland and Northern Ireland is also trying to unite itself.
The Brexitt referendum result was known to be seminal event and was forecasted to lead to a stable and less predictable policy framework in the UK. Now what would happen after Britain has voted to leave the EU? Brexit and global markets would definitely be affected. Brexit means a lot for the economy of the nation. The victory of the Brexit also sent out economic shock waves all throughout the global markets as well as the stocks in the UK which had a steady decline on Friday. The pound also fell to its lowest level. Britain has also lost its top AAA credit rating. There is uncertainty about what would happen next when Britain leaves the EU because it would then again have to make new and revised trade agreements with all the rest of the world. The market would face economic volatility; however, people are well prepared for the same.
The people who support Brexit has a point that European Union countries have enticement to continue trade with the UK as it is one of the largest importer of goods and services. EU, however feels that the foreign companies will not be likely to invest here and they also have a chance of relocating their headquarters if Britain loses its clutch to EU market. It is also felt that Brexit would allow Britain to take back the control, of all its borders in order to restrict immigration and also increase the security of the region.