Brexit dispute risks fanning inflation, pushing BoE rate up

A big blowup over Brexit could further unnerve the outlook and depress the pound.A weaker currency would push prices higher at a time when inflation is already running at more than the BoE’s 2% target.

LONDON: Britain’s debate about whether to walk away from post-Brexit commitments with the European Union (EU) over Northern Ireland risks unsettling an already sputtering economic recovery.

With the government in London threatening to invoke Article 16 of the Northern Ireland protocol, which governs trade in the region, economists warn that retaliatory measures from Brussels could hit exports and investments and deliver a further blow to the pound.