U.K. Brexit Secretary Steve Barclay said the risk of a no-deal split with the European Union is “underpriced.”
Barclay was asked by lawmakers if he thought the EU would be willing to offer concessions that would make the divorce deal acceptable to Parliament, which has rejected the current agreement three times.
“I think a no-deal is underpriced,” he replied.
The pound fell 0.9% on Tuesday on growing expectations that the next prime minister will lead the U.K. into a chaotic rupture with its biggest trading partner.
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