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Goldman sees softer, later Brexit as MPs reject May's deal for a third time

Goldman Sachs cut to 45 per cent from 50 per cent the chance that a modified version of the current withdrawal agreement is eventually approved in the House of Commons

Reuters  |  Milan 

Brexit
Goldman Sachs said the odds of 'no Brexit' had risen to 40 per cent from 35 per cent

The balance of risks around outcomes is tilted towards a softer, longer departure from the European Union, Goldman Sachs said after British lawmakers on Friday rejected Prime Minister Theresa May's withdrawal agreement for a third time.

"Risks around the timing of the ratification of that modified deal are now skewed towards a long Article 50 extension (of greater than one year) rather than a short Article 50 extension (of fewer than three months)," economist wrote in a note late on Friday.

"A long extension of this kind would require UK participation in elections to the European Parliament," he added.

Goldman Sachs cut to 45 per cent from 50 per cent the chance that a modified version of the current withdrawal agreement is eventually approved in the House of Commons. It said the odds of 'no Brexit' had risen to 40 per cent from 35 per cent, while it kept the probability of 'no deal' unchanged at 15 per cent.

First Published: Mon, April 01 2019. 12:02 IST
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