Central Banker UK: Probability That Brexit Deal Fails Is Uncomfortably High

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Central Banker UK: Probability that Brexit deal Fails is uncomfortably High. Mark Carney, the governor of the British central bank, calls the probability that the United Kingdom will leave the EU without closing a transit deal “uncomfortably large”.

 

He also calls a departure from the EU without a deal “very undesirable”.

That’s what Carney states. Also insists that a transition period after the British departure from the European Union is “absolutely in the interest” of both parties.

Failure to reach an agreement there would lead to raised prices and would obstruct trade and economic activity in the United Kingdom, according to the central banker.

“The job of the Bank of England is to ensure that this does not occur, it’s pretty unlikely, but it’s a possibility.”

According to Carney, the British financial system can mainly deal with the blows.

“We have ensured that the banks have the capital and the liquid assets they need, and we have the contingency plans ready.”

Carney expects that EU will also take steps
But the British banks cannot do everything themselves. The EU must also take some steps,

 Carney says. What precisely they are, he leaves in the middle.

“We have negotiations (with the EU, ed.) And we expect that these points would look at.”

On Thursday, the British central bank raised interest rates to 0.75 percent.

It is only the second time since the financial crisis that the British central bank has adjusted interest rates by 0.25 percentage point upwards.

According to Carney, it is not unlikely that the interest rate will reach 1.5 percent within three years.

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