Mark Carney says Bank of England is doing ‘everything we can’ to make Brexit a success

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MARK CARNEY today vowed that the Bank of England will do “everything we can” to make Brexit a success.

But the Bank governor heavily hinted that he would oppose a “no deal” scenario which would see us leaving the EU without a trade agreement.

 Mark Carney insists the Bank of England is working to make a success of Brexit

EPA
Mark Carney insists the Bank of England is working to make a success of Brexit

Mr Carney also warned that interest rates are set to rise in a bid to curb “frothy” lending, which could lead to a repeat of the financial crisis.

Asked whether he is optimistic about the future of Britain after Brexit, Mr Carney told BBC Radio 4’s Today programme: “We are appropriately prudent.”

He then added: “We need to do everything we can to make it work.

“From a Bank of England perspective that’s making sure the financial system is ready for it and being able to work with our European partners in a future arrangement.

“Others have much broader responsibilities and what they do will provide the answer to that.”

 Mr Carney with Theresa May yesterday at a Bank event in London

Reuters
Mr Carney with Theresa May yesterday at a Bank event in London

Mr Carney has previously been accused of being overly pessimistic about Brexit after he claimed that the country’s economic growth will be limited by our EU departure.

He warned that bank lending was excessive, with personal debt rising by 10 per cent.

The governor said: “What we are worried about is a pocket of risk, a risk in consumer debt – credit card debt, debt for cars, personal loans.

“They have been taking too much credit for a relatively good economic environment and not been as disciplined as they should in their underwriting standards and their pricing on this debt.

 The Bank governor warned that there is an epidemic in bank lending to consumers

PA:Press Association
The Bank governor warned that there is an epidemic in bank lending to consumers

“We are worried about the shift from what has been responsible lending to reckless lending. We have the prospect or the possibility of that developing.

“Some of it is getting a little frothy and should be addressed. We have the tools to address it.”

Mr Carney said interest rates are set to rise “in the relatively near term” but insisted the rise would only happen gradually.

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