British consumer morale suffered its sharpest drop in more than 26 years after last month’s decision by voters to leave the European Union, according to figures that are likely to embolden Bank of England policymakers to take action next week.
Market research firm GfK said its gauge of consumer confidence fell to -12 from -1 in June, the biggest drop since March 1990 – when Margaret Thatcher was prime minister and Britons were reeling from interest rates rising to 15 percent.
The comparison ends there, however. Economists expect the Bank to cut rates to a new low of 0.25 percent next week and possibly revive its bond-buying programme, spurred by plunging business and consumer morale since the June 23 vote.