ECB's Lane warns hard Brexit isn't off table

Economy | Politics 11/9/2018, 10:02 AM
ECB's Lane warns hard Brexit isn't off table

Philip Lane from the European Central Bank’s (ECB) Governing Council cautioned that a disorderly withdrawal of the United Kingdom from the European Union is likely to prompt a decline in the pound's value. Speaking in Dublin on Friday, the rate-setter said Brexit without a comprehensive deal with the administration in Brussels is still a possibility and that he wouldn't rule it out.

In his remarks, he also highlighted the credit risks associated with the country's scheduled departure from what will remain a 27-member trade bloc.

Lane, who is also the governor of the Central Bank of Ireland, also weighed on the domestic economy, saying it is "intrinsically volatile," according to the institution's press release. He said that apart from Brexit, risks for "sudden and sizeable adverse shifts in fundamentals" include changes in international conditions, shifts in international trade or domestic policy errors. The central banker vowed to also focus on resilience and consumer protection in Ireland.

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