LONDON (Reuters) - Bank of England Governor Mark Carney and other officials at the central bank are speaking at a news conference after the BoE published a report on the impact of Brexit.
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“If there’s one thing you take from the avalanche of paper and the numbers and the discussion today, it is that the core of the UK financial system is ready for Brexit whatever form it takes.”
“The proportion of businesses that have contingency plans, or who have initiated contingency plans or who have activated contingency plans remains a fraction of businesses as a whole.
“In several cases, it is very difficult for those businesses to plan for border frictions. They can plan for tariffs, they can plan for a change in the price of selling their goods, but in terms of the logistics of making that happen, it’s very difficult... that’s a very common phenomenon.”
“Parliament has demanded this analysis.
“We have to do it. And we’ve done it, and if you have to do it and you’ve done it, and parliament demands it, and you’re accountable to the people of the United Kingdom through parliament, you expose it and there’s nothing more here than that.
“The level of preparedness of businesses and infrastructure, infrastructure such as ports, customs systems and transportation operations, will be important determinants of how well the economy adjusts to new trade barriers.
“Evidence from surveys and other UK authorities suggests that the country is not yet fully prepared for a cliff-edge Brexit.”
“The future potential of this economy and its implications for jobs, real wages and wealth are not in the gift of central bankers.
“Rather the economic consequences of Brexit over the longer term will depend on the nature of the UK’s future trading relationship, on other government policies and ultimately on the ingenuity and enterprise of the British people.”
CARNEY ON NO-DEAL BREXIT
“Our job is not to hope for the best but to prepare for the worst.”
“We have looked at a potential no-deal, no-transition Brexit... the reason we do that is to be prepared for all eventualities.”
“(The FPC has been) looking at exactly these type of scenarios and making sure we’re getting the financial system ready for something that is an unlikely scenario, and even in that unlikely scenario we’ve taken it to what we think is the worst case version of that unlikely scenario.”
“These are scenarios, not forecasts. They illustrate what could happen, not necessarily what’s most likely to happen.”
“The scenarios are calculated for the policy relevant timelines for the bank, that is, up to five years, and as such they’re not assessments of the relative long-term merits of different trading relationships.”
Reporting by Kate Holton and Alistair Smout