London-UK-England

The governor of the BoE says Britain’s exit from the EU is no longer a massive risk to financial stability in the U.K.

Read: Top tips from portfolio managers in 2016

Speaking to lawmakers, Mark Carney said Wednesday that monetary stimulus enacted by the central bank shortly after June’s EU referendum had decreased such risks. The central bank cut its main interest rate, among other actions, to help the economy.

Read: U.K. economy ended 2016 on a high note

Still, Carney warned that the process of adapting to life outside the EU could amplify risks to stability once again.

Carney said it would be in the interests of both Britain and the EU to have a transitional phase for the financial services sector when Britain starts the formal talks to leave the bloc. Those talks are due to start by the end of March.

Also read: Canadian firms expect U.S. growth despite uncertainty: BoC

Originally published on Advisor.ca

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