Brexit could add risks to the EU – BoE’s Carney

At his press conference today following the BoE’s Financial Stability Report, Governor Mark Carney argued that:

Additional risks to Eurozone could come due to Brexit.

The drop in the Sterling since Brexit suggests markets expect modest real income growth, less open trade.

Consumers drawing down savings and borrowing for first time since crisis, reinforcing indebtedness.

Carney added that it is absolutely in EU's interest that there is continued access to UK provided financial services for firms in the EU.

Carney also feels quite comfortable that UK financial system has been stress tested against extreme version of tensions starting to emerge.