Brexit agreement reduces economic risk, says BoE

The Bank of England has said that the risk of a disorderly Brexit has been reduced following a recent breakthrough in negotiations with the European Union, according to Reuters.

Policymakers at the Bank of England opted unanimously not to change interest rates from their current 0.5% level, one month after they were increased for the first time in over a decade.

The Bank of England said that in spite of economic data indicating the economy might be slowing slightly in late 2017, the annual budget issued by Chancellor Philip Hammond should produce moderate growth over the next few years.

Following difficult talks, Prime Minister Theresa May reached agreement with the European Commission last week regarding key points including payment to the European Union, rights of EU citizens within the UK and the border between the EU and UK. The parties will now move on to negotiating a transition agreement and trade deal for the longer term.

The Bank of England said that a deal “would reduce the likelihood of a disorderly exit, and was likely to support household and corporate confidence.”

Bank of England Governor Mark Carney had been the subject of criticism for focusing on the negative impact of Brexit rather than the opportunities it offers. Carney has countered that his role requires him to highlight publicly any risks he perceives to threaten the UK economy.