BoE governor warns of no-deal Brexit recession risk

Mark Carney governor of the Bank of England (BoE) has warned of the rising risk of the UK going into a recession, should we have a no-deal Brexit.

Thursday the Bank slashed growth forecast to its weakest in 10-years, growth forecast was cut to 1.2%, its lowest since 2009 when the UK hit a financial crisis followed by a recession.

Carney cautioned that the “fog” of Brexit is increasing the chances of recession, especially if the UK leaves the EU with a no-deal Brexit.

Carney said, “When the economy is growing more slowly, the probability of it having a negative quarter or two goes up.

“If there’s a shock, which… a no-deal transition Brexit would be, it would be a negative shock, then that further increases the possibility of negative quarters.”