Mark Carney backs Theresa May's Brexit deal

Bank of England governor says failure to reach a deal would cause a 'large negative shock'

Mark Carney has thrown his weight behind Theresa May's Brexit deal, warning that a no-deal scenario would damage the economy, trigger job losses, lead to lower pay for workers and cause inflation to rise.

The governor of the Bank of England said May's draft EU withdrawal agreement would "support economic outcomes" that would be positive for the British economy, primarily because it would give Britain more time to prepare for whatever final Brexit deal is agreed between Westminster and Brussels.