The Bank of England’s latest financial stability report warns against a “no-deal” Brexit scenario.

London

Mark Carney, Governor of the Bank of England has voiced serious concerns over a 'no-deal' Brexit. In an interview with Reuters, he said “it would be a material event for interest rates if Britain leaves the European Union next year without a deal to smooth its departure. Our job is to make sure we are as prepared as possible.”

Carney also said that he “could not predict which direction rates would move in the event of a no-deal Brexit, it was too soon to judge the government’s proposals for Brexit published earlier this month”.

“Speaking very narrowly about the financial services side, in the event of a no-deal scenario… there would be big economic consequences. We might have a lot of idle bankers as there is not a lot of demand for their services,” Carney said.

“Yes, we are concerned that the EU has not yet indicated its solution. The private sector cannot solve these issues,” Carney said.

“This is fundamentally about taking responsibility to protect the financial system… It’s cold comfort, but it will be worse in Europe than it is here.”

 

Dr. Ray NultyComment