Mark Carney warns of “alarmingly high” no-deal Brexit risk

Bank of England governor Mark Carney has warned the risk of a no-deal Brexit has become “alarmingly high.”

Carney also hit out at suggestions from Brexiters that the UK could leave the EU on World Trade Organisation terms and maintain zero tariffs as “absolute nonsense.”

Speaking to Sky News, he said that despite parliament, the government and the EU expressing a desire to avoid a no-deal Brexit, it was still the default option.

He said: “No deal would happen be accident, it would be sudden.

“There would be no transition, it would be an accidental disorderly Brexit.”

He added that around three quarters of businesses had put in place contingency plans for a no-deal Brexit.

Last month the Canadian told MPs a disorderly Brexit could cut GDP by around five per cent.

But he said the financial sector had protected itself by preparing for the worst case scenario.

He said: “In the financial sector a huge amount of preparation has been done to take out extreme tail risks elements.

“There would be lots of things to worry about in a no-deal Brexit, but the financial sector is not one of them.

“But financial stability is not the same as market stability, it doesn’t mean asset prices aren’t going to change and the currency isn’t going to change and it’s not the same thing as economic stability.”