BoE Governor Mark Carney said in a BBC radio interview that the risk of no-deal Brexit is “a relatively unlikely possibility but it is still a possibility”. And it would be “highly undesirable”. He added that “the possibility of a no deal is uncomfortably high at this point.”
In case of a no-deal Brexit, there would be disruption in trade, economic activity and higher prices for a period of time. He emphasized that “our job in the Bank of England is to make sure that those things don’t happen. It’s relatively unlikely but it is a possibility. We don’t want to have people worrying that they can’t get their money out.”
Nonetheless, he also noted that the financial system is robust and “banks have the capital, the liquidity that they need and we have the contingency plans in place”.
But he also said “the UK has taken all the steps, all the secondary legislation it needs to. The European authorities still have some steps they need to take. We’re having conversations and we expect those to be addressed.”
