Chances of no deal ‘high’ says bank chief
- Credit: PA Wire/PA Images
The governor of the Bank of England has warned the chance of a no-deal Brexit is 'uncomfortably high'.
Mark Carney also said any potential deadlock that leads to the UK crashing out of the European Union would spark higher prices for consumers.
His stark words came as the prime minister cut short her holiday for talks with French president in a bid to win support for her Chequers deal. Sources said the meeting – at president Emmanuel Macron's summer retreat, Fort de Bregancon – was requested by Theresa May. French media reported that the meeting highlighted a growing desperation from the UK government.
Carney said both the UK and EU should 'do all things to avoid' a no-deal scenario.
He added that the banks have done the 'stockpiling' and the country's financial system is in a position to be able to 'withstand a shock' which could result from the UK leaving the EU without an agreement.
You may also want to watch:
Carney, appearing on BBC Radio 4's Today programme, said: 'I think the possibility of a no deal is uncomfortably high at this point.'
Asked if no deal would be a disaster, he added: 'It is highly undesirable. Parties should do all things to avoid it.'
- 1 Tory MP blames 'chaotic parents' for children going to school hungry
- 2 Boris Johnson 'hid in bedroom' to avoid grilling on Brexit stance days before becoming PM
- 3 Danny Dyer praised for criticisms of Tory party - pointing out Etonians can't run the country
- 4 George Osborne says it is 'game over' for Boris Johnson over free school meals
- 5 UKIP set to select 'Dr Gammons' as candidate for London mayoral election
- 6 Liz Truss' department slammed for false claim about cost of soy sauce after Brexit
- 7 Andy Burnham could have been 'halfway through tenure as PM by now', claims commentator
- 8 Minister sparks concerns about pig semen after Brexit
- 9 Minister says he 'doesn't understand' accusation he's starving kids in holidays
- 10 Brexiteer in lockdown denial over 49% drop in constituency Covid-19 cases
Pushed on what no deal would mean for people, Carney said 'disruption to trade as we know it' before adding: 'As a consequence of that, a disruption to the level of economic activity, higher prices for a period of time.
'Our job at the Bank of England is to make sure those issues don't happen in the financial system so that people will have things to worry about in a no-deal Brexit, which is still a relatively unlikely possibility but it is a possibility, but what we don't want to have is people worrying about their money in the bank, whether or not they can get a loan from the bank - whether for a mortgage or for a business idea - and we have put the banks through the wringer well in advance of this to make sure they have the capital.'
Become a Supporter
The New European is proud of its journalism and we hope you are proud of it too. We believe our voice is important - both in representing the pro-EU perspective and also to help rebalance the right wing extremes of much of the UK national press. If you value what we are doing, you can help us by making a contribution to the cost of our journalism.