September 14, 2018 / 6:55 PM / in 7 months

BoE's Carney sees 16 billion pound economy boost if Chequers Brexit deal approved - FT

FILE PHOTO: Bank of England Governor Mark Carney speaks during a press conference in London, Britain August 2, 2018. Daniel Leal-Olivas/Pool via Reuters/File Photo

(Reuters) - Bank of England Governor Mark Carney has told Prime Minister Theresa May’s cabinet that the economy could expect a 16 billion pound bounce if May negotiates a Brexit deal based on her Chequers compromise plan, the Financial Times reported on Friday.

Carney told ministers that if May succeeded in negotiating a deal similar to the Chequers plan — which foresees a free trade area in goods and agriculture — there would be an economic bounce, the FT said.

The optimistic assessment of the Chequers deal came from “a pick-up in investment, more people to move jobs, and a pick-up in consumer confidence and underlying activity”, the report said citing Carney.

British newspapers had earlier reported Carney told ministers Britain’s property market would crash and mortgage rates spiral up in the event of a chaotic no-deal Brexit, with house prices falling 35 percent over three years.

The Bank of England did not immediately respond to a request for comment.

Reporting by Rama Venkat Raman and Kanishka Singh in Bengaluru

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