Carney hits back at critics of Brexit scenarios

Cornelia Mascio
Dicembre 7, 2018

Mark Carney defended the publication of the Bank of England's Brexit scenarios, telling Parliament that the institution couldn't hold back its analysis once lawmakers had asked for it.

Mark Carney said today that the scenarios set out by the bank were based on detailed preparatory work to ensure banks and other lenders were ready for Brexit, and were not off-the-cuff forecasts. "You asked for something that we had and we brought it and gave it to you", he said.

May agreed a plan with European Union leaders last month but it faces deep opposition in parliament including from within May's own Conservative Party.

Food prices in the United Kingdom could rise by as much as 10% in the case of a chaotic Brexit, the governor of the Bank of England has warned.

While the Bank of England would respect "any path" taken by parliament, the governor said: "From a financial stability perspective, it's highly undesirable to be a rule-taker and lose supervisory autonomy for any considerable length of time". "But what people will do if the price of something goes up more than something else, they will switch products". Mr Carney was responding to an article by Lord King, published hours earlier, in which the peer accused the governor of being drawn into a project "to scare the country".

The Governor also said that the worst-case scenario impact of Brexit was also a "low probability", given the extreme assumptions.

Some politicans have suggested a Norway-style Brexit could be a temporary solution for Britain as it struggles to find a way to strike a new long-term relationship with the EU.

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