Thread by @faisalislam

Carney: Bank working to ensure financial system works whatever form Brexit takes...

But financial stability is not market stability, in no deal no transition Brexit... preparations cannot eliminate fundamental changes... businesses expect output and employment to fall in No Deal

Carney says his former colleague the Trump official Gary Cohn was “wrong” to tell @BBCJonSopel that No Deal is preferable to continued uncertainty - said its always better to get a deal with a transition

I ask Carney if Downing St should rely on a massive monetary stimulus from the Bank of England in event of No Deal: “it depends” he replies - points to inflationary impact of tariffs and sterling falls.

Says No Deal, uniquely will be simultaneously both a demand & a supply shock

Carney says he is receiving many incoming calls from global policy makers as perceived chances of a No Deal Brexit rise...

Carney says that BoE will update its worst case No Deal scenario in September after a request from Treasury Select Committee

NB - in saying “it’s wrong” of the argument that the certainty of a No Deal is better for the economy than continuing the uncertainty about Brexit - Governor Carney not just critiqued the argument used by Gary Cohn, it’s an argument used by the PM too.

“No deal as a crystallisation of a bad economic outcome is not preferable to the possibility of a better economic outcome... “ said Carney. the Government has argued that the certainty of No Deal by end of October will lift some of the clouds around business investment.

Governor Carney coming up on Today shortly...