Governor of Bank of England Mr. Mark Carney has revealed that around half of the economy of Britain is not prepared to handle a no-deal Brexit as fewer than half the business organizations in the country have launched contingency plans to handle the crisis. While speaking to news agencies he affirmed that UK’s business entities need a transition period to adapt them to every form exit from EU that its parliament members may choose. He denied that the bank’s warning that no-deal Brexit would plunge the nation into recession for meant for scaring people so that they would back his proposal for Brexit.
He stated that there are issues around the ports and borders that still need to be sorted out so there should be a short transition period for businesses and citizens to get used to living without the support of EU’s trade relationship. This warning came in view of a warning by UK’s MP’s during early this week about likelihood of major disruption at UK’s ports if there is a no-deal Brexit situation. But Dept. of Transport assured that the information was not accurate and situation was under control.
BOE governor Mark Carney has been accused by conservative MP Jacob Rees-Mogg of bringing down the value of UK pound due to his hysterical declarations that the nation would go through a rough phase if Brexit ended without a deal. As a supporter of Britain’s exit from EU he assured the nation that as around 87 % of British organizations do not trade with European Union this deal will not have any effect on them. By leaving the EU the nation would be exposed to greater economic opportunities that neither BOE nor Treasury wishes to recognize. The statements by Mr Carney were made after government bodies forecasted that UK would be poorer by leaving the EU and its economy would shrink by 3.9 % within 15 years.