In just a few hours, the polls will open in the UK for a vote on the most contentious question for the nation in a generation: Should Britain remain in the European Union?
It’s a question with massive ramifications for the country. But what will it mean on this side of the pond?
For some insight, we asked Sherry Cooper, former Chief Economist at BMO, and Chief Economist at Dominion Lending Centres.
Cooper says in her analysis, if the UK were to leave the EU, it would be bad news for the country’s financial markets, including assets and bonds. She says the Pound took a pounding in recent weeks when the “leave” side looked to be leading in the polls.
And she says those warning signs could mean bad news here in Canada.
“Markets don’t like uncertainty, and uncertainty is never good for the economy.”
Cooper says a Brexit could leave global markets in turmoil for some time, which could in turn have an effect on the Canadian dollar and local interest rates – which are already pinned at historically low rates.
She also says it could also see capital flee from Britain, with Canada a possible attractive and stable safe haven.
“And some of it may find its way to Vancouver. And Vancouver’s housing market is already red hot, boiling over.”
She says it will also be bad news for any local businesses who have operations, partners, or clients in the UK or EU.