European regulators to be braced for financial market volatility, says Philip Lane

European regulators need to be braced for financial market volatility if very clear progress is not evident in Brexit negotiations by November, Irish Central Bank Governor Philip Lane said on Thursday.

"If in the coming weeks the probability of a hard Brexit goes up, that can be in itself damaging even if it ends up to be okay by the end of March (when Britain leaves)," Philip Lane, who is also a member of the European Central Bank's Governing Council, told an Irish parliamentary committee.

"Unless there is very rapid and very clear progress within this month and November, if it's not evident by then, then we will be witnessing this volatility until that final answer is there."

(With inputs from agencies.)