News World No-deal Brexit would impair key UK industries -BoE's Carney

No-deal Brexit would impair key UK industries -BoE’s Carney

Bank of England Governor Mark Carney said on Friday that some major industries could become unviable if Britain leaves the European Union without striking a deal with the bloc, adding that this was now a real prospect.

New Prime Minister Boris Johnson says he will take Britain out of the EU on Oct. 31 – regardless of whether he gets a transition deal to keep trade running smoothly – prompting markets to price in a higher risk of a disorderly Brexit.

Speaking a day after the BoE cut its growth forecasts for Britain’s economy, Carney said he shared a view among the government and public that a no-deal Brexit was now a “significant possibility”.

“The economics of no-deal are that the rules of the game for exporting to Europe or importing from Europe fundamentally change,” Carney said in an interview with BBC News.

“And there are some very big industries in this country where that which is highly profitable becomes not profitable, becomes uneconomic,” Carney said in an interview with BBC radio.

He said the automotive, transport, food and chemical sectors would face the biggest challenges in the event of a no-deal Brexit.

Economists polled by Reuters on average see a one-in-three chance that Britain departs the EU without a deal in place to smooth that transition.

Supporters of Brexit say Carney is overly pessimistic about Britain’s future outside the European Union.

Former Conservative Party leader Iain Duncan Smith said he was “one of the architects and promoters of Project Fear” in comments published in the Daily Telegraph on Friday – a charge Carney denied.

“It … is not helpful to deny that shifting from the most integrated economic relationship in the world, which is being a member of the European Union, to a new relationship that is potentially just WTO relationship … that that would not have an effect on the economy,” Carney said.

(Reuters)

Top Stories

Further easing of restrictions in force from today

  The further easing of restrictions on gatherings and in the outdoor areas of catering establishments come into force from today, July 12, reflecting the...

Paphos: Eight catering establishments booked

  Paphos police last night carried out 13 checks on catering establishments and booked eight for breaking decrees to prevent the spread of coronavirus. The eight...

Another sizzler, temperatures stuck above 40 C inland

    Cyprus will continue to bake today with temperatures rising to 41 C inland and the heat wave forecast to continue until Wednesday. A yellow alert...

Poles vote in presidential election that could define EU relations

  Poles vote on Sunday in a knife-edge presidential election that may shape the country's future relations with the European Union, which have been frayed...

In first, Trump dons masks in visit to a military medical facility

  President Donald Trump, who has avoided wearing a mask in public even as the coronavirus pandemic spread, donned one on Saturday at a military...

Taste

Kolokasi (Taro Root)

Ingredients: (Serves 4) 1 kg kolokasi (taro) root ½ kg pork (lean belly pork or shoulder) cut into large cubes 6 tbsp olive oil 1 head of fresh celery,...

Moungra

Moungra is a traditional Cypriot mezze which consists in cauliflower pickled in fermented bread dough and typically served as an appetizer or meze. It...

Cheesy Eggplant Rolls

Ingredients 4 Eggplants 2 tbsp olive oil 1 chopped onion, 2 grated carrots 1 garlic clove (sliced) ¾ of the cup finely chopped canned tomato, ½ ts sugar 1 ts oregano 2 tbsp...

Black eyed peas with chard (Louvia me laxana)

Ingredients: 2 cups black eyed peas small lemon (juice) + 1 tsp lemon zest 1 bunch Cypriot chards olive oil & lemon for serving salt & pepper Method: Step 1 Put the...