Brexit to have negative impact on UK economy: Commentator

Press TV has interviewed Shabbir Razvi, an economic commentator in London, to discuss UK’s vote to exit the European Union.

A rough transcription of the interview appears below.

Press TV: How do you react to what the UK has decided?

Razvi: Obviously as in your opening comments it was said that it is a historical event. It is one-time lifetime issue. Families have been split; friends have voted in different manner, it has huge significance for Britain.

I think overall what has happened is that there have been differences in voting patterns. As your reporter from Manchester was saying that Scotland and Northern Ireland have voted to really remain in some huge numbers but at the same time there is also disparity within England. For instance, in London the vote has been hugely in favor of staying in and also people in different age groups, people under the age of 45 have also voted in favor of remaining. It is the older population and plus 60 who have significantly voted in favor of exit.

So there are discrepancies but I think what is important to understand is really the whole scaremongering tactic which was used by the group that wanted Britain to  be out of the European Union and especially the immigration, the foreigners coming into United Kingdom, that card was played very strongly which I think frightened a lot of people.

I think fundamentally the issue has been really a protest vote by the ordinary people who for the last eight years under the austerity measures being applied in the United Kingdom and also Europe wide are really frustrated with the bureaucrats in Brussels and those communities that have seen the job losses over the last eight years, incomes not increasing, social security benefits being cut, health care, national health service being privatized, all host of issues that have really contributed for people to vote in protest against the ruling elite in Britain and against the European Union.

So you cannot just easily decide for that, it was just one issue or the other but it is a sad moment, I believe, for United Kingdom to be out of the European Union and at the same time whatever the European leaders may say, I believe it will have an impact on other nations in European Union who may also want to exit – Holland, Italy and a few other nations that may want to take the same route as Britain has decided to do at this moment.

Press TV: I am wondering how do you feel about the impact this will have on the British economy, that was obviously a large part of the campaign?

Razvi: We have seen in the last 24 hours immense volatility in the market, stock market has been wiped off by about 20 billion pounds, the pound has fallen over the cliff as we have seen against all the other major currencies, so it will have an impact.

There is some discussion whether because of the pound falling inflation may increase in United Kingdom because Britain has to buy goods from overseas which will have to pay a higher price for it which will effectively reflect in the prices on the High Street. That is one issue.

Secondly, potentially the interest rate could go up which may impact mortgage payers in the UK but because of the whole fragile nature of the economy, I think it is a bit early to say exactly what is likely to happen but I think it will certainly have a negative impact on the economy as we go ahead in the next weeks and months.

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