Euro zone's upswing will go on notwithstanding Brexit

The UK’s decision to break up with the European Union doesn’t fundamentally change the outlook for the euro zone, as Jens Weidmann, Bundesbank President told in an interview released on Thursday.

From his point of view, the overall economic outlook for the currency area hasn’t radically changed through the Brexit vote.

Obviously, there might be relatively a small damper, although in general the upward trend will most likely go on, as he stated. Furthermore, he added that it was too early to give any reliable predictions as for what it might mean for future price developments.

Weidmann then repeated his view that the overall effectiveness of ultra-loose monetary policy will go down over time, and the risks along with side effects will edge up

Though once again - uncertainty is clearly pronounced now and we require waiting a little for detailed economic indicators to better evaluate the consequences of the Brexit vote.

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