European Central Bank chief Mario Draghi issued a reminder on Thursday that the potential negative consequences stemming from the UK’s exit from the EU have not yet crystallised. “We should not think it’s over,” he said at his regular press conference.
The trade linkages are there, and that will be a channel of economic consequences. [The consequences] will depend on the shape of the final negotiations, and how long they will take.
But he stressed that it is not the only key risk to the eurozone economy:
[There] are possible negative surprises in some emerging market economies, that’s also a source – we shouldn’t forget that in early 2016 we had big worries about what was happening in China – the situation has improved since then but uncertainties remain.
The euro ended the ECB’s press conference roughly where it started, wiping out earlier pops higher and lower.