The surprise outcome of the Brexit referendum in Britain has increased risk in the global economy and has significant implications for Britain as well as for other countries in the EU and the Eurozone in particular who are under severe economic stress. This will emerge over time The effects on Australia are likely to be small through the international trade channel but shifts in global capital following the risk shock and changes in confidence in the Australian economy can be significant. The distribution of interest rate outcomes in my vote over the next 12 months has shifted to the left however my best guess of the most likely appropriate setting of interest rates at the 1,6, and 12 months has not changed.