Britain’s divorce from the EU causes global financial turmoil
The most prevalent topic in financial news today is Brexit and its effect on economic conditions world wide. The surprising vote to leave the European Union has left many flummoxed, but CUNA economists expect credit unions to be safe from serious financial repercussions.
According to CUNA economists, “Our outlook for credit union financial operations is essentially unchanged compared to our view prior to the Brexit vote. Credit union members are likely to be a bit more cautious initially, and some credit unions will likely see above-normal flows into savings accounts. However, our view still calls for double-digit growth in credit union loans in 2016, healthy earnings, and improving asset quality.”
CUNA reports that the United Kingdom is the seventh largest trading partner of the U.S, accounting for less than three percent of total trade
In the big picture, it’s almost certain that U.S. interest rates will remain low in the face of the volatile international economy.