X

This is not a paywall.

Register for free to continue reading.

We made a promise to you that we’ll never erect a paywall and we intend to keep that promise. We also want to continually improve your reading experience and you can help us do that by registering with us. It’s quick, easy and will cost you nothing.



Nearly there! Create a password to finish up registering with us:


Please enter your password or get a login link if you’ve forgotten


Open Sesame! Thanks for registering.

First Thing, Daily Maverick's flagship newsletter

Join the 230 000 South Africans who read First Thing newsletter.

We'd like our readers to start paying for Daily Maverick

More specifically, we'd like those who can afford to pay to start paying. What it comes down to is whether or not you value Daily Maverick. Think of us in terms of your daily cappuccino from your favourite coffee shop. It costs around R35. That’s R1,050 per month on frothy milk. Don’t get us wrong, we’re almost exclusively fuelled by coffee. BUT maybe R200 of that R1,050 could go to the journalism that’s fighting for the country?

We don’t dictate how much we’d like our readers to contribute. After all, how much you value our work is subjective (and frankly, every amount helps). At R200, you get it back in Uber Eats and ride vouchers every month, but that’s just a suggestion. A little less than a week’s worth of cappuccinos.

We can't survive on hope and our own determination. Our country is going to be considerably worse off if we don’t have a strong, sustainable news media. If you’re rejigging your budgets, and it comes to choosing between frothy milk and Daily Maverick, we hope you might reconsider that cappuccino.

We need your help. And we’re not ashamed to ask for it.

Our mission is to Defend Truth. Join Maverick Insider.

Support Daily Maverick→
Payment options

Risk of no-deal Brexit 'uncomfortably high': BoE govern...

Newsdeck

Newsdeck

Risk of no-deal Brexit ‘uncomfortably high’: BoE governor

A logo for Marks and Spencer is displayed on a store in London, Britain, 01 February 2018. The clothing and food retailer announced a number of store closures after a disappointing Christmas period when sales of both food and clothing fell. EPA-EFE/NEIL HALL
By AFP
03 Aug 2018 0

Bank of England Governor Mark Carney warned Friday that the possibility of a no-deal Brexit was "uncomfortably high" and "highly undesirable" but still "unlikely" compared to other outcomes.

“The possibility of a no-deal is uncomfortably high at this point,” Carney told BBC radio.

Carney, who is due to step down next year after Britain leaves the European Union as scheduled in March, said no-deal was “a relatively unlikely possibility but it is a possibility”.

Brexit negotiations are “entering a critical phase”, he said, speaking ahead of a meeting between British Prime Minister Theresa May and French President Emmanuel Macron later on Friday.

Carney said Britain’s financial system would in any case be able to “withstand the shock” as banks have increased capital and liquidity and contingency plans have already been put in place.

“We’ve already done the stockpiling,” he said.

“Our job is to look at what could go wrong, what are the bad outcomes that could happen… so it lessens the impact of a bad deal, a no-deal Brexit in this case,” he said.

A no-deal Brexit would “mean disruption to trade as we know it and as a consequence of that a disruption to a level of economic activity, higher prices for a period of time,” he added.

Carney revealed that banks had been stress-tested for property prices falling by more than a third, interest rates going up by almost four percentage points, unemployment rising to 9.0 percent and the economy entering a 4.0 percent recession.

“The financial system will be ready,” he said. DM

Gallery

Please peer review 3 community comments before your comment can be posted