Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

BoE would pump in emergency money after no-deal Brexit, minister says

Published 02/19/2019, 08:04 AM
Updated 02/19/2019, 08:04 AM
© Reuters. FILE PHOTO: A man walks past the Bank of England in the City of London

© Reuters. FILE PHOTO: A man walks past the Bank of England in the City of London

LONDON (Reuters) - The Bank of England would have to step in to pump emergency money into the economy if Britain left the European Union without a deal, a junior business minister said on Tuesday.

The Bank of England has said that the policy reaction to a potential no-deal Brexit would not be automatic, although last week Governor Mark Carney warned of the potential shock to the economy if Britain leaves without a deal.

Junior business minister Richard Harrington said that Britain would have to employ significant measures to support the economy.

"If we do leave with no deal, I do feel in the short term it is government’s role – government, the Bank of England, all the other tools that we have – to take what will be emergency action to deal with a drastic situation. In traditional terms that would mean pumping money into the economy in different ways," he said at a manufacturing conference in London.

"Now I’m not talking about financial tools, but the banks will have to step forward with additional liquidity because of the shock that it will have on the economy."

© Reuters. FILE PHOTO: A man walks past the Bank of England in the City of London

Harrington said that he did not believe there would ultimately be a no-deal Brexit as he expected that parliament would take control of the process and prevent it.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.