Prime Minister’s deal backed by bank chief

Bank of England governor Mark Carney has backed Theresa May’s EU withdrawal plans and warned that ano-dealbrexitwould be the “worst outcome”.

In a hearing yesterday with MPS on the treasury select committee, Mr Carney said the bank welcomed “the transition arrangements in the withdrawal agreement” and noted the “possibility of extending that transition period”.

The Prime Minister is aiming to win over hesitant MPS to back her deal reached in Brussels last week.

Mr Carney told MPS Mrs May’s Brexit “supports economic outcomes”, but warned that a “no-deal, no-transition Brexit” would be the “worst outcome” for the bank.

He said the risk of a no-deal was“uncomfortablyhigh”and added a no-deal scenario was “not in the interests of either party”.