Home Business NewsBusinessBanking News Carney warns no-deal Brexit fears is damaging businesses

Carney warns no-deal Brexit fears is damaging businesses

by LLB Reporter
26th Jun 19 1:48 pm

The Bank of England has warned that a “notable” increase in a no-deal Brexit fears along with uncertainty is damaging Britain’s economy.

The governor Mark Carney told MPs that due to the lack of progress and the new Article 50 extension businesses are in limbo with preparations and investment.

As a result of Brexit uncertainty in businesses and markets, this is affecting the short-term economic performance.”

There is still no certainty that the UK is to leave the EU by the deadline of Halloween which is causing companies to not make key decisions thus affecting wider growth.

Carney warned, “Rolling short-term uncertainty is particularly damaging for business confidence and activity.”

An MP asked Carney if the government brings this “nightmare to an end at Halloween” with a resolution one way or another, he replied, it depends on what that outcome is.

A no-deal and a no transition Brexit would be for businesses the “worst way to resolve that uncertainty.”

He further said that it is “absolutely” clear this is all weighing heavily on businesses and investment which is set to remain “lacklustre” for the second quarter.

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