Markets see lower no-deal Brexit risk: Bank of England's Carney

Mark Carney, governor of the Bank of England (BOE).
Simon Dawson | Bloomberg | Getty Images 
Mark Carney, governor of the Bank of England (BOE).

Bank of England Governor Mark Carney said sterling's rise after Prime Minister Theresa May's Brexit plan was defeated in parliament suggested investors felt the risk of a no-deal Brexit had diminished, or that the process would be extended.

"I'm not giving my view, I'm giving the markets' initial take," Carney told lawmakers in parliament on Wednesday during a regular hearing.

"I wouldn't put much weight on these very short term-moves. The market is waiting."

The British pound rallied to its highest in nearly two months against the euro on Wednesday. Against the dollar, the pound was broadly flat at $1.2866 after jumping by nearly a cent immediately after Tuesday's vote.