Carney Says Brexit Delay Could Make a No-Deal Less Disruptive
BOE's Carney Says No-Deal Brexit Risk Lowered After Extension
(Bloomberg) --
The six-month extension to the Brexit process has eased some of Bank of England Governor Mark Carney’s concerns about a no-deal departure, even if it ends up happening.
The decision last night in Brussels has cut the chances of a disruptive cliff-edge exit by providing a “window of time” for politicians to forge a consensus on a way forward, Carney said at an event in Washington.
Last week he described the likelihood as “alarmingly high.” On a panel Thursday he said financial markets were simply not ready for such a departure and that U.K. productivity data is already showing the harmful impact of the uncertainty fueled slide in business investment.
Now, even if politicians chose to move to World Trade Organization rules without a deal, they could do so in a more organized way, he said.
“In the way that things were set up in the run up to March 29 and the run up to last night, no deal would have been an accident and not a choice,” he said. “It’s different to decide to move to WTO terms in an orderly fashion as well-prepared as possible, if we can debate the advisability of doing that.”
The BOE governor, who has extended his tenure at the central bank twice already, said the delayed Brexit date would not affect his plans to step down at the end of January.
To contact the reporter on this story: Jessica Shankleman in London at jshankleman@bloomberg.net
To contact the editors responsible for this story: Fergal O'Brien at fobrien@bloomberg.net, Lucy Meakin, Zoe Schneeweiss
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