BREAKING: British Prime Minister Theresa May bows to political pressure, says Brexit delay is possible if Parliament rejects her deal to leave the EU.
British Prime Minister Theresa May has bowed to political pressure and says that if Parliament rejects her Brexit deal, lawmakers will then get to decide whether to leave the EU without an agreement or seek to delay the country’s departure from the bloc.
Addressing lawmakers Tuesday, Carney said it’s a “reasonable possibility” that uncertainty will persist as businesses and households will still be unsure about what the future relationship between the U.K. and the EU will be.Britain is due to leave the EU on March 29. A withdrawal agreement will in theory see a transition period kick in whereby Britain follows EU rules for a period until the future relationship is agreed upon.
Gertjan Vlieghe, one of the bank’s rate-setters, said he thinks rates are more likely to go down or stay unchanged given the likely “hit to confidence.” The bank, he said, has not seen any liquidity stresses in the markets, adding that the system is “very liquid.”