BOE's Carney Says No-Deal Brexit Would Be 'Instantaneous Shock' to Economy

The video discusses the complexities of a no deal scenario, highlighting its unique economic impact as both a demand and supply shock. It explains the challenges in adjusting supply capacity, particularly in relation to trade with Europe, and emphasizes the readiness of the financial system. The potential economic consequences, such as lower Sterling value, higher inflation, and economic slowdown, are explored. The video also clarifies the meaning of 'no deal' as a situation with no side arrangements, reverting to WTO tariffs and standards.

In what ways is the economy expected to adjust its supply capacity post no deal?

What does 'no deal' mean in the context of the Bank of England's contingency planning?