BoE has limited power to calm market after Brexit transition: Bailey

Governor Andrew Bailey said on Friday there was a limit to the Bank of England's ability to avoid all disruption or volatility in financial markets after Britain's Brexit transition period with the European Union ends on Dec. 31. Prime Minister Boris Johnson has said there is "a strong possibility" Britain and the EU would fail to secure an agreement on trade.

Governor Andrew Bailey said on Friday there was a limit to the Bank of England's ability to avoid all disruption or volatility in financial markets after Britain's Brexit transition period with the European Union ends on Dec. 31. "I don't want us to be in a situation, were it to occur, where people say 'well you haven't done this and you haven't done that' but I have to say there is a limit to what we can do," Bailey said at a news conference following the publication of the BoE's Financial Stability Report.

EU customers of British financial institutions would be affected by decisions made by euro zone authorities, Bailey said. Prime Minister Boris Johnson has said there is "a strong possibility" Britain and the EU would fail to secure an agreement on trade.