Bank of England governor Mark Carney speaks on the need for a Brexit transition deal, the UK economy, and Meghan Markle

 
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The Bank of England governor addressed the most pressing issues facing the UK economy (Source: Getty)

Agreeing a transitional Brexit deal is “in everyone’s interest” on both sides of the Channel, Bank of England governor Mark Carney said today.

Speaking in Liverpool to ITV’s morning show, Carney said: “The government recognises, parliamentarians, businesses, people across the country, people in Europe recognise as well that it is in everyone’s interest to have at a minimum a transition period to the new relationship.”

The Bank’s officials have repeatedly called for negotiators to agree a transitional period, warning that failure to agree a transition will harm the UK economy and the financial sector.

Read more: BoE's Mark Carney: Brexit no deal will slow UK growth

On the longer-term relationship, Carney urged policymakers on both sides of the Channel to pursue “as comprehensive and open a trading and investment partnership between the UK and the EU27 at the end of that transition” as is currently the case.

Carney added the Bank will do all it can to support the UK economy during a transitional period, or if there was no deal at all, by controlling price rises and ensuring financial stability.

He said: “We will do whatever we can to support the economy during the transition, whatever form of deal is struck, whether there is no deal or a comprehensive deal.

“We can provide support by keeping prices low and stable and by making sure banks can withstand whatever shock that might come – whatever deal we have.”

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Carney also addressed the economic consequences of the Brexit vote, noting the UK economy has slowed notably since the vote, although he also credited the Bank’s actions in unleashing extra monetary stimulus for sustaining growth.

He said: “We have not done as well as we would have done in the short term if the vote had gone the other way.

“We’ve moved from being the strongest in the G7 to the slowest growing economy in the G7.”

Meanwhile, asked if he had “any tips” for Meghan Markle, an American actress who has spent a significant amount of time in Canada who is also girlfriend of Prince Harry, Carney called for shadow chancellor John McDonnell to offer his own expertise in the Bank governor's stead.

Read more: Bank of England raises interest rates for the first time in a decade

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