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UK central bank: no-deal Brexit risk ‘uncomfortably high’

London, Aug 03 : The value of the pound has plunged after Bank of England governor Mark Carney said the risk of Britain leaving the European Union without a deal is “uncomfortably high.”

Divorce talks between Britain and the EU have stalled amid feuding within Prime Minister Theresa May’s government about how close an economic relationship to seek with the bloc after Brexit. Officials say there is a growing chance no deal will be struck before the U.K. leaves in March.

Carney said Friday that “the possibility of a ‘no deal’ is uncomfortably high at this point.” He told the BBC that a no-deal Brexit would mean disrupted trade and higher prices and was “highly undesirable.”

The pound fell about 0.2 percent to below $1.30 just after the comments.