Bank of England’s Carney says UK system ready for ‘cliff-edge’ Brexit

The U.K.’s banking system is actually prepared to handle a much worse outcome through Brexit than is actually likely to happen, Bank of England Governor Mark Carney said Friday.

“With respect to Brexit, the Bank of England doesn’t focus on the most likely outcome, yet rather the possible consequences of a disorderly cliff-edge exit through the European Union, however unlikely of which may be,” Carney said during a speech in fresh York. “The most likely outcome is actually a deal in addition to a smooth transition.”

Carney spoke as the U.K. in addition to European Union are straining to finalize the terms of a separation of which voters approved in 2016.

Though he said he believes the separation can be done that has a minimum of disruption to the financial system, he expressed fear of which the EU has not done as much to guard against potential issues as the BoE.

For its part, the bank has conducted intense stress tests to prepare for a messy divorce.

“In our judgment, our stress test last year was severe enough to encompass the wide range of macroeconomic in addition to financial risks of which could be associated that has a low-probability disorderly Brexit,” Carney said.

As Carney spoke, UK Prime Minister Theresa May expressed trust for Brexit talks, telling business leaders of which EU politicians are hoping to put a deal together This particular autumn.

“The prime minister spoke for about 10 minutes in addition to the tone of her message was quite optimistic,” Reuters reported, citing a source familiar with the content of the call. “She said she believed of which the European leaders were very much committed to an agreement This particular autumn. She said of which her aim was to wrap This particular up in November.”

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