Wednesday , November 20 2019
Home / unitedkingdom / Carney: Brexit Agreement 'Positive' for the UK economy

Carney: Brexit Agreement 'Positive' for the UK economy

Media playback is not supported on your device.

Media Caption& # 39; Agreement takes the risk of a cluttered Brexit & # 39;

The Bank of England governor told the BBC that the government's new Brexit deal is "welcome" and a "net economic positive."

Mark Carney said the deal "takes the risk of a disorderly Brexit."

However, the governor warned that the deal may not boost the economy to the same extent as proposed by Boris Johnson's predecessor Theresa May.

Johnson's deal is expected to be voted by MPs on Saturday.

Carney said the "different" future relationship negotiated this week means "it is yet to be seen" if the deal would generally be as positive for the economy as the deal proposed by Johnson's predecessor Theresa May.

When pressed on the impact of likely extra customs checks on the further relationship with the EU envisaged by the new agreement, Carney said his economic outcome would not "overlap" with the earlier version of Theresa May's previous agreement, "and in the last one. excerpt. is diplomacy ".

"The new economic partnership has yet to be negotiated, so there is still a wide range of possible relationships based on this agreement, but in the short term it eliminates these risks," Carney said.

"Last night in the G20 room, it was universally welcomed that this progress had been made because, if I put it in context – the global economic perspective of the world – the world is in a precarious position – I am quoting the IMF – and would directionally agree with this characterization.

"Attempt to avoid scrutiny"

Chancellor Sajid Javid has been less diplomatic, refusing to recalculate Treasury impact assessments despite calls from some lawmakers who want an economic forecast in time for the crucial Commons vote on the deal.

His decision not to release a new analysis has drawn criticism from those who think lawmakers should have an updated version of the impact of the deal.

Catherine McKinnell MP, interim chairman of the Treasury Committee, wrote to the chancellor asking him to publish an updated economic analysis before the vote on Saturday.

"The Treasury Committee asked HM Treasury if the government updated its Brexit economic analysis three months ago, but we are still waiting for a response," she wrote.

"It seems to be an attempt to avoid scrutiny. If the chancellor does not provide the committee with an update, we can only assume that the existing analysis holds."

Earlier Treasury forecasts showed a smaller economy from a basic free trade agreement.

Source link