Bank of England governor Mark Carney warns of “big” impact from Brexit no deal | City A.M.

Bank of England governor Mark Carney today warned of a “big economic consequences” if the UK leaves the EU without a deal.

A “no deal” Brexit would be a “material event” for interest rates, he said, according to Reuters.

Carney has previously said that the Bank would be prepared to use the monetary policy tools at its disposal, including cutting interest rates, in the event of a disorderly Brexit.

Carney was being questioned on financial stability alongside other Bank bosses by the Treasury Select Committee, although his full remarks will not be published until later today because of technical issues with a live broadcast.

The hearing is taking place at the Farnborough Air Show, rather than the usual parliamentary committee rooms, but an online audio-only stream was plagued by technical difficulties before shutting down altogether.

A judgement on the government’s Brexit white paper, agreed by the Cabinet almost a fortnight ago at Chequers, would be “premature”, he said. However, he added that he was “stopping short of saying it’s all there” in relation to the UK’s economic relationship with the EU.

The Bank has long made it clear that a no deal Brexit, in which trade with the EU defaults to World Trade Organization terms, would be damaging to the UK economy.

Carney has also repeatedly urged the EU to secure the status of contracts, including trillions of pounds of derivatives, after Brexit. If the EU does not act it could risk financial stability, he has warned.