October 3, 2019 / 9:26 AM / 12 days ago

ECB's de Guindos: markets may be underpricing impact of no-deal Brexit

FILE PHOTO: European Central Bank (ECB) Vice-President Luis de Guindos attends a news conference on the outcome of the meeting of the Governing Council, in Frankfurt, Germany, September 12, 2019. REUTERS/Ralph Orlowski/File Photo

MADRID (Reuters) - European Central Bank Vice President Luis de Guindos said on Thursday markets may not be fully pricing in the potential negative impact of a disorderly exit of Britain from the European Union.

“We have not gauged so far the impact that Brexit is having (...) I think we are really underestimating the impact of the present uncertainty and that’s why I have fears, concerns that the impact of a disorderly Brexit would be much higher than the one that they (markets) are discounting now,” De Guindos told a financial event in Madrid.

On Wednesday, British Prime Minister Boris Johnson made a final Brexit offer to the European Union, pitching a possible compromise for a last-minute exit deal that was cautiously welcomed by the EU, though the two sides still remain far apart.

Reporting By Jesús Aguado, editing by Andrei Khalip

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