Bank of England governor Mark Carney has told members of the Treasury Select Committee that interest rates would "more likely than not" be cut in the event of a no-deal Brexit.
Carney stated that the job of the Central Bank in the event of the UK leaving the EU without a deal and without a transition period would be to support economic growth while also maintaining inflation close to the 2 per cent target.
Carney said: "The challenge with actually doing that [supporting the economy] is that a no-deal, no-transition Brexit will be inflationary."
He said the Central Bank would provide "what support it can" for the economy, but that economic growth would be very much lower than it has forecast to date if the UK exits without a deal.
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