BOE Warns of Downside Risks From No-Deal Brexit and Global Trade



Lucy Meakin, Jill Ward, and David Goodman | Bloomberg

Bank of England policy makers reiterated the downside risks to the U.K. economy from Brexit and global trade tensions, even as they emphasized that interest rates could still rise.

Departing the European Union without a deal would hamper the U.K.’s long-term growth prospects, Michael Saunders told lawmakers on Parliament’s Treasury Committee on Tuesday. The nation would suffer from reduced openness to international trade and less appeal as a global business location.

An escalation in trade turmoil would also damage British exports, investment and asset prices, he said. Those comments were echoed by Deputy Governor Ben Broadbent, who in his own responses to the group said “a disorderly Brexit remains the most significant risk” to financial stability.

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