In a speech at the Irish central bank, BoE Governor Mark Carney emphasized that BoE is ” well-prepared for whatever path the economy takes, including a wide range of potential Brexit outcomes.” And, “we have used our stress test to ensure that the largest UK banks can continue to meet the needs of UK households and businesses even through a disorderly Brexit, however unlikely that may be.” He emphasized that “our job, after all, is not to hope for the best but to plan for the worst.”
It’s reported that Carney told Prime Minister Theresa May’s cabinet a no-deal Brexit could trigger 25-35% fall in UK house prices over three years. He said today that this is not a prediction but something that the central bank needs to be prepared for.
