You wanted it, you got it - Carney defends BoE Brexit report

Chaotic Brexit Could See Food Prices Rise By 10%, Mark Carney Warns

Carney hits back at critics of Brexit scenarios

Less than half United Kingdom businesses have initiated contingency plans for a no-deal Brexit, says Mark Carney.

Mark Carney defended the publication of the Bank of England's Brexit scenarios, telling Parliament that the institution couldn't hold back its analysis once lawmakers had asked for it.

Carney, speaking to lawmakers on Tuesday, denied a suggestion that the BoE's scenarios were rushed out to help May get support for her Brexit plan and stressed that the central bank had been asked to provide them by lawmakers.

Mr Carney told MPs on the Treasury Select Committee that increased tariff prices, import costs and a sharp fall in the value of the pound would send food prices soaring "quite quickly", while cars would also cost more after Brexit.

"There's no exam crisis".

All its assessments have seen it as a potential negative. "We didn't stay up all night - you asked for something that we had and we brought it and gave it to you".

Carney's appearance in front of MPs comes on day one of a five day debate in the House of Commons on May's proposed Brexit deal, and ahead of the key meaningful vote on December 11.

Former Bank of England Governor Mervyn King joined the criticism today when he lamented the central bank's involvement in what he said was an attempt to frighten the country about Brexit. He also took a swipe at the bank's analysis, saying it "saddens me to see the Bank of England unnecessarily drawn into this project".

"Tail risk is tail risk", he said, adding that it was "low probabilty that all these risks would happen at the same time".

"We're already sleeping soundly at night, because we have the financial sector, the core of the financial sector, in a position that it needs to be for a tough scenario".

In the most extreme no-deal scenario, he said shopping bills could rise by up to 10%, but even in an orderly no-deal withdrawal, with a transition period, he said grocery prices could rise by 6%.

A refusal by MPs to accept the the PM's proposal could see the United Kingdom crash out of the European Union without a deal, instead relying on World Trade Organisation rules.

"The reason the financial sector is ready for Brexit is because we stress the financial sector to the kitchen sink, which is what you'd expect".

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