UCHA: John, Brexit is now a reality. How do you assess the short- and
medium-term implications for the UK economy?
BUTLER: This is huge. This is a seismic shift in the underlying picture for the UK,
both in the short term and potentially the long term. You now have maximum
uncertainty about the outlook. I think there’s a good chance the UK heads into
recession as capital spending by businesses gets delayed. And I think we will
see a continued downward drift in sterling which will raise inflation, potentially
massively squeezing real wages and precipitating a consumer recession.
MUCHA: How do you expect markets in the UK to respond over the
coming days and weeks?
BUTLER: Most directly, sterling will move lower. That’s the obvious trade. The