We, at the Central Bank, while hoping for the best, are continuing to prepare for plausible worst-case scenarios, including a ‘hard Brexit’. This involves ensuring that existing Irish firms understand and are planning for the impact that Brexit will have on their businesses; and engaging with those firms that are executing plans to move to Ireland, or firms changing their business models in Ireland.
There are many asymmetries associated with Brexit. For example, there are asymmetries in the relative importance of Brexit to the current members of the EU, with the UK, obviously, and Ireland the most affected. There are, consequently, asymmetries in the incentives that those affected by Brexit have, and consequently the decisions that they are making.