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No-deal Brexit to weigh on housing market, sterling–BoE

No-deal Brexit to weigh on housing market, sterling–BoE

Mubasher: Highlighting the risks of the UK crashing out of the European Union (EU) without a deal, the Bank of England (BoE) warned against pressures on the sterling pound, government bonds, and housing market.

“Significant market volatility and asset price changes are to be expected in a disorderly” Brexit, the BoE said in its Financial Stability Report released on Thursday, while predicting also “material economic disruption.”

However, the report said that big banks have the strength to weather a global trade conflict with a no-deal Brexit.

Moreover, risks of disruption to cross-border banking operations due to the UK divorce with the EU, have been mitigated, despite more action is required from the bloc’s end to mop up risks.

It is worth noting that the BoE has for long warned against Brexit as a major threat to the nation’s financial stability.

The UK is due to leave the EU by the end of October, yet the parliament is still deadlocked, refusing to approve a transition agreement, raising no-deal Brexit prospects.