The U.K.’s banking method is prepared to handle a much worse outcome from Brexit than is apt to to happen, Bank of England Governor Mark Carney said Friday.
“With courtesy to Brexit, the Bank of England doesn’t focus on the most likely follow-up, but rather the possible consequences of a disorderly cliff-edge exit from the European League, however unlikely that may be,” Carney said during a speech in New York. “The most credible outcome is a deal and a smooth transition.”
Carney spoke as the U.K. and European Society are straining to finalize the terms of a separation that voters approved in 2016.
Notwithstanding he said he believes the separation can be done with a minimum of disruption to the fiscal system, he expressed fear that the EU has not done as much to guard against aptitude issues as the BoE.
For its part, the bank has conducted intense stress tests to fabricate for a messy divorce.
“In our judgment, our stress test last year was demanding enough to encompass the wide range of macroeconomic and financial risks that could be associated with a low-probability tumultuous Brexit,” Carney said.
As Carney spoke, UK Prime Minister Theresa May expressed yearning for Brexit talks, telling business leaders that EU politicians are hoping to put a deal together this autumn.
“The prime parson spoke for about 10 minutes and the tone of her message was quite cheerful,” Reuters reported, citing a source familiar with the content of the call. “She answered she believed that the European leaders were very much promised to an agreement this autumn. She said that her aim was to wrap this up in November.”