BREXIT READY
Britain is ready to weather Brexit no matter what happens, Bank of England’s Mark Carney predicts
BRITAIN is ready to cope with Brexit no matter what happens, Bank of England Governor Mark Carney predicted yesterday.
As the Bank published a set of economic forecasts for the year ahead, he said he was still think it's likely that the new PM would reach an agreement with the EU.
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And getting a deal sorted will stabilise Britain's economy and see the pound pick up, he added.
Mr Carney said yesterday: "The country has to be prepared for that contingency, and the financial sector is prepared for that contingency.
"The core of the financial sector is ready for No Deal."
It came on the same day that Boris has plugged an extra £2billion of cash into No Deal preparations, including more money for borders, vital medical supplies and a PR campaign to get Britain ready for whatever outcome.
The chances of a No Deal Brexit have spiked in recent days, and minister in charge of it Michael Gove has admitted they are working on the "assumption" that the EU won't budge and we'll have to leave on World Trade Organisation Terms.
But Mr Carney's forecasts said: "If, as assumed, Brexit proceeds smoothly to some form of deal, market interest rates would likely rise and the sterling exchange rate would likely appreciate."
And shares in UK businesses would get a boost too.
Britain's economy is still set to grow this year by 1.3 per cent, and the same next year.
However, the effects of sealing a deal could take a while to start coming through - as businesses will wait to see what Britain's future relationship with the EU will look like first.
By 2021 Britain is set for a bigger boost, with GDP rising by 2.3 per cent, experts predicted.
If the EU refuse to compromise and Britain has to leave the EU without an agreement on October 31, Britain's economic growth could shrink, prices could go up and the pound plummet further, Mr Carney said.
His gloomy warnings were another example of the Project Fear campaign that was seen before the 2016 EU referendum.
The uncertainty around Brexit at the moment means there's a one in three chance Britain could sink into a recession.
Iain Duncan Smith said his claims should be taken with a "massive pinch of salt".
Boris has promised to get Britain out of the EU no matter what by October 31, a move which has boosted Brexiteers but seen the pound slump.
But the Governor urged him to spell out his No Deal plans in more detail to better help his predictions and make sure businesses can get ready.
And he admitted that "there aren't many people out there who really know how this [Brexit] going to finish".
Mr Carney told a news conference at lunchtime that the country had the strength to weather through any uncertainty that Brexit could bring.
He said:"This country is one of the most flexible economies in the world, and supported by the strongest financial centres in the world.
"It's difficult to change overnight."
And he added that businesses wanted to see a deal with a transition arrangement in it so they could properly prepare.
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That would mean staying in the EU's systems like the customs union and single market, for years to come.
Yesterday the Federal Reserve in America announced a cut to their interest rates and hinted at more to come.
But the Bank of England's Monetary policy chose to keep rates unchanged at 0.75 per cent.
Boris Johnson insists Brussels are to blame if they force Britain into a No Deal Brexit by refusing to compromise
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