Economics
Carney Counts Brexit Cost as BOE Sees Weakest Growth in a Decade
- Investment may drop even if a smooth exit can be agreed
- Pain will get worse without Brexit clarity, Carney warns
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Brexit uncertainty is cascading through the U.K. economy, rattling households and companies, according to Bank of England Governor Mark Carney.
In its Inflation Report on Thursday, the central bank delivered a pessimistic view, with Carney warning that the “fog of Brexit” is creating tensions. Even based on a smooth exit from the European Union -- which looks more unlikely as the March 29 deadline rushes closer -- it still sees the economy growing at its weakest pace in a decade, a dramatic investment slump and weaker pay gains.