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Brexit: Food prices can rise 10%, says Mark Carney

Media playback is not supported on your device Mediaskrift Banker Mark Carney Food prices can rise between 5% and 10%…

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Mediaskrift Banker Mark Carney

Food prices can rise between 5% and 10% if there is a breakdown Brexit, Bank of England Governor Mark Carney, has warned.

Carney told the MPs that in the extreme “extreme” case prices would rise by 10%, but in a less serious scenario, the increase would be around 6%.

The Bank of England and its governor have attempted to assess Brexit’s impact on several occasions.

All their assessments have seen it as potentially negative to the economy.

Carney colleague Sir Jon Cunliffe said that Britain imported about half of its food from abroad.

Price increases would be due, in part, to a decline in the value of the pound, partly from any fees, and partly by increased costs at the border when imports are checked.

Carney told MEPs on the Finance Committee: “In the most extreme scenario, your purchase bill grows by 1

0%.”

Ports are not ready

Carney also said that Britain’s ports were not ready for a wedding that could not be overlooked trade under World Trade Organization (WTO) rules.

He said, “At this point, the ports are not ready for a transition to a managed WTO relationship.”

“To be clear, our agents, my colleagues, have gone to these ports and have conversations directly with the ports in question. We have talked to private logistics companies, so we have gathered direct information about this. “

According to WTO rules, tariffs – a tax on merchandise – would apply to British goods. The average WTO tariff varies from product to product, from 0% on mineral fuels and pharmaceuticals to about 20-35% on processed foods and 45

In an early personal revelation, Carney said that he had spent the weekend with the WTO chief Roberto Azevedo.

Carney said if Britain abandoned customs on European goods and continued the duty-free benefits of membership in the European Union, it would do the same to everyone else.

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Media caption Brexit deal: How will it affect chocolate products?

MPs challenged Mr. Carney over what some critics has called Brexit scaremongering. Last week, the bank published scenarios that indicate a no-deal Brexit could send the pound and throw trigger a worse recession than financial crisis the ice.

Carney told the MPs that much work had been done in the bank’s assessments: “There is no graduation crisis. We did not stay all night. “

He said that a core team of 20 senior economists had been working on the assessments for a couple of years, 150 different professionals across the bank were also taken in and then the report was reviewed by both the monetary policy committee and the bank’s finance policy committee.

” Sleepy “

Bank has direct responsibility for the financial sector, losing jobs in connection with Brexy’s uncertainty.

But Carney said that the bank was comfortable preparing for the sector because it had prepared for the worst scenario: “We are already sleeping quietly at night, because we have the financial sector, the core of the financial sector, in a position it needs to be a difficult scenario. “

His colleague, vice-governor Sam Woods, who was also before the parliamentarians, said that fewer than 5,000 financial jobs had moved from the country since the referendum amounted to about half a million employees in the sector, a” rather small “number.

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