A “no-deal” Brexit could have delayed and added costs to the shipments of imports, for example. The central bank had previously warned the British economy could shrink by 8 percent in the months after a “no-deal” Brexit. According to the Bank of England, two thirds of firms said they were as prepared as possible be for a “no-deal” Brexit. The central bank had previously forecast that business investment would start rising again soon after the Brexit deal had been passed. Carney cautioned that investors may be underestimating future interest rate rises.

Source: Washington Post May 02, 2019 06:15 UTC