Irish c.bank gov says Brexit uncertainty to persist for some time

DUBLIN, June 29 (Reuters) - The uncertainty created by Britain's vote to leave the European Union will persist for some time and resulting delays in consumer spending and investment are of immediate concern, Ireland (Other OTC: IRLD - news) 's Central Bank governor said on Wednesday.

In a note to staff, Philip Lane said the bank had already begun to revise its macro-economic forecasts and that the ultimate impact on Ireland will be influenced by whatever post-Brexit settlement Britain reaches with the EU.

"The negotiation between the UK and the EU is going to take a considerable period of time and energy, and uncertainty will persist for some time," the note, seen by Reuters, said.

"Elevated uncertainty about the implications of the vote for the UK and euro area economies is an immediate concern, generating delays in investment plans and purchases of consumer durables."

After cutting Ireland's 2017 GDP growth forecast to around 3.4 percent from a previous estimate of 3.9 percent on Thursday, Finance Minister Michael Noonan said it was impossible to calculate the longer term effects for Ireland until the new arrangements between the EU and Britain are known.

Lane, also a member of the governing council of the European Central Bank (ECB), said substantial work would be undertaken by the ECB to gauge the potential medium- and long-term effects and the response would be tailored accordingly.

He also said that some financial services companies, including fund management and payment services firms, might seek to revise location decisions as a result of the referendum.

While he said it remained too early to speculate on potential increases in applications for authorisation in Ireland, developments were being closely monitored and the implications for resourcing would be appropriately managed.

Dublin is considered, alongside the likes of Frankfurt, Paris and Amsterdam, as a potential location for any financial services firms that may choose to leave Britain but wish to stay in the EU. (Reporting by Padraic Halpin; Editing by Mark Heinrich)