Site map
العربية Български 中文 Čeština English Français Deutsch हिन्दी Bahasa Indonesia Italiano Bahasa Malay اردو Polski Português Română Русский Srpski Slovenský Español ไทย Nederlands Українська Vietnamese বাংলা Ўзбекча O'zbekcha Қазақша

InstaForex Client Area

  • Personal settings
  • Access to all InstaForex services
  • Detailed statistics and reports on trades
  • Full range of financial transactions
  • System of managing several accounts
  • Maximum data protection

InstaForex Partner Area

  • Full information on clients and commissions
  • Graphic statistics on accounts and clicks
  • Webmaster instruments
  • Ready-made web solutions and wide range of banners
  • High data protection level
  • Company's news, RSS feeds, and forex informers
Register account
Affiliate Program
cabinet icon

Another Lamborghini from InstaForex!Maybe it will be you who will take the keys!

Just make a deposit of at least $1,000 to your account!

Get the best trading conditions and attractive bonus offers! We have already given 6 legendary sports cars! But it does not stop there! The next Lamborghini Huracan of the latest generation may be yours!

InstaForex – invest in your victories!

Instant account opening

Get a letter of instructions
toolbar icon

Trading Platform

For mobile devices

For trading via browser

Bank of England Governor Mark Carney on Tuesday defended the central bank's analysis that a no-deal Brexit would cause a severe recession in the UK, the kind not even seen during the global financial crisis a decade ago.

The central bank and Carney faced lot of criticism with several pro-Brexit lawmakers accusing them of fear-mongering.

Responding to questions on the same from lawmakers at a hearing on Tuesday, Carney said some criticism was "entirely unfair".

"There's no exam crisis. We didn't just stay up all night and write a letter to the Treasury Committee. You asked for something that we had, and we brought it and we gave it to you," the BoE chief told lawmakers.

Carney said the probability of the worst-case Brexit scenario, which is the country leaving the EU without any agreement on future relationship, especially on trade, and a transition period, actually happening was low.

"Tail risk is tail risk," he said.

The BoE predicted that the economy could shrink as much as 8 percent next year in the event of a disorderly Brexit. House prices could rise 30 percent and inflation could hit 6.5 percent as the pound dives.

The jobless rate could rocket to 7.5 percent from 4.1 percent now and interest rates could be hiked sharply.

Carney added more to these on Tuesday, saying food prices could jump as much as 10 percent if there is a 25 percent slump in the pound due to a no-deal Brexit.

Deputy Governor Ben Broadbent explained to lawmakers that food prices could climb under a no-deal Brexit as the import costs would be higher due to a weaker pound.

Some food items could face tariffs and costs at borders would be higher due to customs checks.

The BoE Governor also reminded lawmakers that the UK ports were not ready to deal with a disorderly Brexit when the UK will trade under rules set by the World Trade Organization.

"At this point in time, the ports are not ready for a move to an administered-WTO relationship," Carney said.

BoE policymakers also dismissed the idea that a Norway-model Brexit would work for the UK. Under this arrangement a non-EU member, such as Norway, remains a member of the single market by joining the European Economic Area, or EEA. However, the country will not have a say in rule-making. A Norway-style Brexit has been suggested as a temporary arrangement by some lawmakers, that can allow time for the UK to form a new permanent relationship with the EU.

Deputy Governor Jon Cunliffe pointed out that the British financial industry is "20 times bigger than Norway's" and that the UK would feel "quite uncomfortable" in a group where it has no role in setting rules.

Carney also voiced concern that the UK would become a rule taker, with regard to financial services industry, in a future arrangement with the EU. That would be "highly undesirable", he said.

Elsewhere on Tuesday, former Governor of the Bank of England and Carney's predecessor Mervyn King wrote in a column for Bloomberg that the bank's worst-case scenario that the UK economy would take a savage hit due to a disorderly Brexit was not "plausible".