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Republic not suffering yet from Brexit factor: report

By Colm Kelpie

There have been few Brexit-related effects on the Republic of Ireland's financial sector or economy so far, its Central Bank Commission has been told.

There have also been no applications from banks in the first half of the year to set up operations in the Republic.

Over a year since the vote, the central bank's Brexit task force presented a report to the commission which noted that despite increased political uncertainty in the UK, financial markets in Ireland have not been adversely affected, according to minutes of the commission's June meeting.

"However, the period had seen a number of moderate developments in the sterling-euro exchange rate, with sterling weakening by about 2% following the UK election and since then being driven largely by market expectations surrounding UK monetary policy," the minutes noted.

"The Bank of England's May Inflation Report contained a broadly unchanged outlook for the near term, although there were some signs of output growth and consumer spending and stronger inflationary pressures during 2017.

"Spillovers to the Irish economy seemed reasonably contained so far."

Belfast Telegraph