Mark Carney can’t save the day when it comes to no-deal Brexit

Bloomberg

Mark Carney won’t be able to play the saviour if the UK leaves the European Union with no deal at the end of October. The Bank of England (BOE) governor said that the institution can’t necessarily deliver a growth-boosting package in the event of Brexit without a transition.
In a week when the pound capped its worst monthly performance in almost three years, he also said it’s “highly unlikely” the BOE would intervene to support the currency. Analysts expect it to fall further if Britain leaves the EU with no deal.
“They don’t want to tell the market that they’re going to go out and do a massive stimulus, even if the market finds it quite hard to believe that they wouldn’t,” said Elizabeth Martins, an economist at HSBC Holdings Plc. “A really disruptive supply shock to the economy is beyond the scope of monetary policy, but clearly the Bank of England will do what it can.”
Carney emphasised that the bank’s reaction will depend on what form of no-deal Brexit occurs, such as a jump to trading on World Trade Organization rules with no mitigating factors,
or whether there’s a degree of preparedness on border infrastructure.
“We will do what we can in those circumstances to support jobs and activity, but there are limits,” he said. He added that the impact of the weaker pound on exports has begun to fade, leaving little room for optimism on whe-ther it will help boost output.