Economics
Carney Warns Rates May Rise in No-Deal Brexit Meltdown
- BOE governor gave dire warning in meeting of U.K. Cabinet
- Outlines worst-case scenario of house prices slumping 35%
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Mark Carney gave a stark warning of the dangers of a no-deal Brexit that could see mortgage rates raised even as economic output and house prices tumble.
The Bank of England governor joined the U.K. cabinet, chaired by Prime Minister Theresa May, to share worst-case economic scenarios used by the central bank, people familiar with the matter said. He told those present that crashing out of the European Union without an agreement would lead to a fall in the pound and higher tariffs, pushing inflation higher.