Bank of England governor Carney warns trade war threat hasn’t gone away

Mark Carney has warned of the damage to the global economy from rising protectionism, describing a “widespread slowdown” that may require a major policy response. The Bank of England governor said the “intensification of trade tensions has increased the downside risks to global and UK growth”, citing falling business confidence and pessimism among households.

He also said the UK faces the additional threat of a no-deal Brexit to business investment. The comments sparked a drop in the pound below $1.26 to the lowest level of the day and the weakest since mid-June.