BOE Carney Says CB Ready for Hard Exit Since Day One

There may still be little clarity on how the U.K. with leave the EU this year, but Bank of England (BOE) Governor Mark Carney has told CNBC that his institution has been preparing for a so-called “hard Brexit” since the referendum back in 2016.

“From the day after the referendum we’ve been preparing for Brexit, no matter what form it takes, if you’re a central bank the easiest thing and the most important thing is to prepare for a hard Brexit with no transition (period). So that’s what we’ve been preparing the (financial) sector for,” Carney told CNBC’s Geoff Cutmore at the World Economic Forum in Davos on Thursday.

He said the bank’s stress tests on what could happen in the event of a “hard Brexit,” in which the U.K. leaves the EU on March 29 with no withdrawal agreement in place (and, crucially, no 21-month transition period), were part of its attempts to test the waters about what might happen.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza