Friday, 1 July 2022 – 15:48

Mark Carney warns of potentially impending no-deal Brexit

Governor of the Bank of England, Mark Carney, has warned that the possibility of a no-deal Brexit occurrence is “uncomfortably high” and that it would have far reaching implications on Britain’s financial system and economy.

Carney stated that the UK and EU would equally benefit from a transition period. 

Carney told the BBC: 

“We have made sure that banks have the capital, the liquidity that they need and we have the contingency plans in place… There is a very broad range of potential outcomes to these Brexit negotiations and we are entering a crucial phase.”

The no-deal Brexit possibility would have an adverse effect on the UK’s trade and economic activity which would cause prices to increase.

He also stated:

“Our job in the Bank of England is to make sure that those things don’t happen. It’s relatively unlikely but it is a possibility. We don’t want to have people worrying that they can’t get their money out.”

“The UK has taken all the steps, all the secondary legislation it needs to. The European authorities still have some steps they need to take. We’re having conversations and we expect those to be addressed,” he continued.

His warning about this issue just before the prime minister had visited the French President Emmanuel Macron in the South of France earlier this week,

The prime minister along with her cabinet ministers have been appealing to other EU countries to gain their support for her Brexit plans.

 

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