Bank of England and British Government warn of harsh possibilities of a no-deal Brexit
- 1 month ago
The British government along with the Bank of England will increase their warnings this Wednesday as a huge blow to the U.K.economy is expected should a no-deal Brexit occur.
It is only a matter of weeks before the U.K. is set to part ways with the E.U. and PM Theresa May has not been able to gather forces within her own Conservative party which leaves the possibility of a no-deal very likely.
Bank of England Governor Mark Carney and finance minister Philip Hammond both stressed the importance of a transition period, which the PM included in her plan in order to smooth the path out of the E.U.
Mr Carney expressed his worries last week when comparing the exiting of the bloc without a tradition period to the 1970’s oil crisis, which would be nothing short of disaster for the worlds fifth-largest economy.
With that being said however, it is more likely that a disruptive Brexit may be the outcome due to the opposition against the PM’s plan which will face voting just under two weeks from now.
Finance minister Philip Hammond told BBC television on Wednesday that no Brexit option would be as good for the economy as staying in the EU, but May’s plan “delivers an outcome that is very close to the economic benefits of remaining in”.
On Wednesday morning the British Government will publish its assessment on the different outcomes of Brexit followed by the BoE, who will publish its own assessment lining out the implications for interest rates and the banking sector’s outlook depending on each scenario.
Something investors will surely be watching with interest.
Source: Smart Trend Team/Independent