In Raising Rates, Britain’s Central Bank Issues ‘Brexit’ Warning<br />But markets pushed down the value of the British pound against both the dollar<br />and the euro following the central bank’s action, an apparent reflection of worry about Britain’s economy and its trade with Europe.<br />If December passes without sign of progress on a trade deal — an outcome<br />that is more than thinkable — that will likely accelerate decisions by multinational companies to move pieces of their businesses to Europe.<br />Nearly half of Britain’s exports are sold within the European Union, a stream of cars, liquor and pharmaceuticals<br />that could confront tariffs absent a completed trade deal.<br />On a June morning last year, as Britain awoke to the startling news<br />that voters had approved Brexit, the central bank governor, Mark Carney, took to television to offer assurances that help was at the ready to cushion against nasty consequences.<br />As the markets factor in the prospect of diminished trade across the English Channel, they have pushed<br />down the value of the pound by nearly 15 percent against the euro since last year’s Brexit vote.
