In Raising Rates, Britain’s Central Bank Issues ‘Brexit’ Warning
But markets pushed down the value of the British pound against both the dollar
and the euro following the central bank’s action, an apparent reflection of worry about Britain’s economy and its trade with Europe.
If December passes without sign of progress on a trade deal — an outcome
that is more than thinkable — that will likely accelerate decisions by multinational companies to move pieces of their businesses to Europe.
Nearly half of Britain’s exports are sold within the European Union, a stream of cars, liquor and pharmaceuticals
that could confront tariffs absent a completed trade deal.
On a June morning last year, as Britain awoke to the startling news
that voters had approved Brexit, the central bank governor, Mark Carney, took to television to offer assurances that help was at the ready to cushion against nasty consequences.
As the markets factor in the prospect of diminished trade across the English Channel, they have pushed
down the value of the pound by nearly 15 percent against the euro since last year’s Brexit vote.