LONDON, Aug. 3 (Xinhua) -- The possibility of a no-deal Brexit is "uncomfortably high" and "highly undesirable," Bank of England governor Mark Carney told the BBC on Friday.
Carney said the prospect of the United Kingdom (UK) leaving the European Union (EU) without a deal was "a relatively unlikely possibility, but it is a possibility."
He urged British Prime Minister Theresa May and EU leaders to "do all things to avoid it."
It was "absolutely in the interest" of the EU and the UK to have a transition period, he said as the Brexit deadline is in just seven months' time.
Critics scorned the comments, calling them part of "Project Fear."
Carney's warning came ahead of May's meeting with French President Emmanuel Macron at his summer retreat on a small island off the French Mediterranean coast.
However, the bank governor said that the financial system was robust and could withstand any post-Brexit shocks.
The prime minister is cutting short a holiday in Italy as she continues to seek support from European leaders for her Brexit plans.
Prices in supermarkets could rise as cross-Channel trade is hit, the governor warned.
He also made clear that the Bank of England was prepared to swiftly reverse Thursday's 0.25 percent interest rate hike back to historic lows if needed to prop up the economy.
