A historically weaker pound on a medium- to long-term basis has a variety of impacts on the U.K. more broadly, economists told CNBC.
The most basic one is that imports get more expensive, while exports theoretically get more competitive.
"The problem is that the UK is very import dependent, almost two thirds of food is imported, so a ten percent decline in the real effective exchange rate really translates quickly into higher food prices," said Mark Blyth, professor of economics and public affairs at Brown University.Richard Portes, professor of economics at the London Business School, also noted the U.K.
Sterling's depreciation is a long-term trend since it was allowed to float freely in 1971, he said, telling CNBC: "I think it's reasonable to expect that to continue. And that's partly because productivity and therefore competitiveness has not been very good relative to our trading partners. So that's the long-run situation."
The U.K.'s current account deficit (which is where a country is importing more goods and services than it is exporting, and
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