11/1/2018, 1:48 PM (Source: TeleTrader)
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Carney: No-deal Brexit not most likely scenario

The United Kingdom crashing out of the European Union without a deal is "not the most likely scenario," Bank of England Governor Mark Carney said on Thursday after policymakers decided to keep interest rates on hold.

"Let's be clear that a no deal Brexit is not the most likely scenario," he told reporters but added that in the event the Uk does leave the bloc without a deal there will be no automatic response regarding monetary policy due to the "extremely unusual set of [those] circumstances." In such a scenario, he stated a "potentially fairly large and rapid" hit to supply would occur, but added he expects a rebound in demand as well after Brexit.

Earlier, the BoE kept its benchmark interest rates unchanged in a unanimous vote after previously hiking rates at its August meeting. In its summary, the bank noted monetary policy will have to be adjusted in line with the outcome of the negotiations with Brussels on Britain's departure from the EU.

Baha Breaking News (BBN) / JC