Why Carney's 35% No-Deal U.K. Housing Crash Is Overkill

(Bloomberg) -- Bank of England Governor Mark Carney painted a stark picture of what a no-deal Brexit might mean for house prices, with prices plunging 35 percent over three years in a worst case scenario. Bloomberg Economics sees that as excessive, as a no-deal Brexit is unlikely to prompt a credit crunch or an increase in interest rates. That should help prevent a substantial decline in house prices, with recent mortgage safeguards and a more modest rise in unemployment than predicted also limiting the number of forced sales.

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