BoE's Ramsden: Markets see roughly 20% chance of no UK-EU trade deal

FILE PHOTO: Puzzle with printed EU and UK flags is seen in this illustration taken November 13, 2019. REUTERS/Dado Ruvic/Illustration

LONDON (Reuters) - Bank of England Deputy Governor Dave Ramsden said on Tuesday that financial markets are pricing around a roughly one-in-five chance that Britain and the EU will fail to strike a trade deal ahead of the Dec. 31 end of the Brexit transition period.

“At the moment, markets are probably pricing in about a 20%, maybe 20-30% chance of no-deal, so you might get some market disruption,” Ramsden said, answering questions from audience members following a speech to the University of Nottingham.

“But what you wouldn’t, through the work that we’ve done through the financial policy committee - we’ve made sure as far as you can that you wouldn’t get a wider financial stability shock.”

Reporting by Andy Bruce; editing by Costas Pitas