Fitch's McCormack Says a Hard Brexit Could Push U.K. Into Recession

The transcript discusses the potential economic impacts of a hard Brexit on the UK, including sovereign rating downgrades, recession risks, and currency fluctuations. It highlights the improvement in UK public finances despite weak growth and the potential erosion of financial cushions in a no deal scenario. The discussion also covers the uncertainty of the duration and severity of a hard Brexit and its implications on the economy, with a focus on the exchange rate and the role of sterling in economic adjustments.

What was one of the improvements in the UK's economy despite weak growth?

• Rise in unemployment

• Improvement in public finances

• Increase in public spending

• Increase in inflation

What factor could influence the severity of a hard Brexit's economic impact?

• The speed of negotiations

• The number of trade partners

• The level of public debt

• The strength of the euro

What is a potential consequence of a hard Brexit for the UK economy?

• Increased foreign investment

• Recession

• Economic boom

• Stable currency

How might the UK's currency respond to a hard Brexit?

• It could be unaffected

• It could remain stable

• It could depreciate significantly

• It could appreciate significantly

What role does the free-floating exchange rate play in the UK's economic adjustments?

• It requires government intervention

• It fixes the currency value

• It allows for automatic adjustments

• It prevents any currency fluctuations