Bank of England governor Mark Carney today gave his backing to the Brexit deal struck by Prime Minister Theresa May and EU officials.
“We have emphasized from the start the importance of having some transition between the current arrangements and the ultimate arrangements,” Carney said.
“So we welcome the transition arrangements in the withdrawal agreement … and take note of the possibility of extending that transition period.”
Committee chair Nicky Morgan asked the governor about May’s proposed deal and how this might impact on the objectives of the Bank. To this, Carney said that a “no deal, no transition Brexit” would be the “worst outcome” for the Bank of England.
Carney further highlighted that leaving the European Union without a deal would be “a large negative shock to the economy.
In the short term, trucks would be stuck at Dover and there would be “immediate friction costs” Carney added.