Scottish Friendly reacts to Brexit vote
Calum Bennie, Savings Expert at Scottish Friendly said: Calum Bennie, Savings Expert at Scottish Friendly reacts to Brexit vote:
“After over 40 years as part of the European Union, today’s vote to leave takes the UK into largely unchartered territory. In the short term, of course, we face a period of instability and market volatility which could affect household finances. Today sterling has plummeted and if it later needs to be propped up by increases in interest rates, this could result in higher mortgage costs. On the other hand, if the economy falters, the Bank of England could leave interest rates at their current all-time low or reduce them further to try and stimulate the economy. Holidaymakers will certainly be hit over the next few weeks with the higher cost of buying currency.”
“UK households, which as Scottish Friendly’s recent Disposable Income Index has shown, are already squeezed, could be in for a period of increased costs meaning they’ll have less – or nothing – to save and invest for their financial future. The FTSE has fallen today but it doesn’t mean it’ll stay in the doldrums as a low sterling level could benefit exporting FTSE companies. Existing investors in shares should not make rash decisions and they should look beyond this period of uncertainty and focus on the long-term.”
About Scottish Friendly
Scottish Friendly is a leading UK mutual life and investments organisation. It provides investors and their families with a wide range of investment and protection solutions and provides life and investment products and services to other financial organisations.
Scottish Friendly has roots stretching back to 1862. Established as the City of Glasgow Friendly Society, its name changed in October 1992 when it took over Scottish Friendly Assurance.
In recent years Scottish Friendly has significantly restructured its business. Scottish Friendly has flourished through a three-part growth strategy of organic growth, mergers and acquisitions, and business process outsourcing.
Scottish Friendly, Scottish Friendly House, 16 Blythswood Square, Glasgow, G2 4HJ
Scottish Friendly Assurance Society Limited. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Scottish Friendly Asset Managers Limited. Authorised and regulated by the Financial Conduct Authority.