Hetal Mehta, European economist at Legal & General Investment Management, said: “So far, Brexit has not been so bad for the UK economy.”
She said she thought it was unlikely that initiating the formal process would cause a material economic downturn, adding: “The main danger is around the nature of the negotiations, and the shifting risks around the UK.
“However, if the discussions are well-mannered and make good progress, the risks should diminish and we believe that the BoE could turn markedly hawkish as a result.”
Yet Michael Stanes, investment director at Heartwood Investment Management, said the start of the negotiations means the hard work now begins for the UK.
“Triggering Article 50 no doubt marks a period of ongoing uncertainty for UK business and markets, but perhaps there is also some relief that the process is finally underway.”
Mr Stanes said his firm continues to be cautious on UK assets and expects higher inflation to weigh on real income growth this year.