Mark Carney, governor of the Bank of England, in a speech warning of growing threats to the global economy, has urged MPs to solve the Brexit impasse.
A no-deal Brexit would create an “economic shock” at a time when China’s economy is slowing and trade tensions are rising, he said.
“It is in the interests of everyone, arguably everywhere” that a Brexit solution is found.”
The Bank has already cut its growth forecasts for the UK, partly due to Brexit issues.
Speaking at the Barbican, in London, Mr. Carney said trade tensions and Brexit are “manifestations of fundamental pressures to reorder globalisation”, and that quitting the bloc could undermine global expansion.
“It is possible that new rules of the road will be developed for a more inclusive and resilient global economy.”
“At the same time, there is a risk that countries turn inwards, undercutting growth and prosperity for all.”
Brexit has created a “high level of uncertainty”, he said, and “companies are holding back on making big decisions”.
As such, he said it was vital for the UK economy to secure a good withdrawal deal and a smooth transition.
“A no-deal would be an economic shock for this country, and this would send a signal globally about re-founding globalisation. That would be unfortunate,” he said.
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