BoE’s Carney sees ‘uncomfortably high’ risk of no-deal Brexit

On Friday,  Bank of England Governor Mark Carney warned  there is an “uncomfortably high” risk that Britain leaves the European Union with no deal, sending sterling to an 11-day low against the dollar.

With less than eight months until Britain leaves the EU, the government has yet to agree a divorce deal with Brussels and has begun talking more publicly about the prospect of leaving the bloc without any formal agreement on what happens next.

Carney said a no-deal Brexit was “a relatively unlikely possibility but it is still a possibility”, adding that it would also be “highly undesirable”.

“I think the possibility of a no deal is uncomfortably high at this point,” Carney said in an interview with BBC radio.

“People will have things to worry about in a no deal Brexit, which is still a relatively unlikely possibility but it is a possibility.”

Consumer prices would likely rise in the case of a no-deal Brexit as companies enacted contingency plans to keep supply chains operating, Carney said.

Sterling slipped to a low of $1.2985 on the comments./


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