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Bank of England governor says May's deal will support UK economy

Source: Xinhua| 2018-11-21 05:50:13|Editor: yan
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LONDON, Nov. 20 (Xinhua) -- Bank of England (BoE) governor Mark Carney said Prime Minister Theresa May's draft Brexit agreement would support the UK economy.

"The withdrawal agreement improves our ability to discharge our functions relative to a no deal," the governor said at a meeting of the Treasury Select Committee.

Carney said the BoE welcomed proposals in the deal between the UK and the EU including a transition period for Britain to exit the EU which could also be extended.

Carney said the BoE believed this would provide certainty and stability for businesses to make decisions and for the economy.

Current uncertainty over the direction of Brexit, which has a looming deadline of the end of March next year, will negatively impact the economy. BoE chief economist Andy Haldane told MPs that business confidence had slid and that investment was stunted by uncertainty, both of which held back economic growth.

"We are seeing somewhat greater impact, particularly on the behaviour of companies. That could make for a somewhat weaker fourth quarter than the third quarter."

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