Boris Johnson Likely to Resign if All Options Exhausted - JPMorgan

Last week, the British Parliament adopted a bill that effectively prevents the government from taking the UK out of the European Union on 31 October without striking a deal with Brussels first.

According to the head of UK economics at JPMorgan, Malcolm Barr, British PM Boris Johnson is likely to leave office amid the Brexit stall.

"The only options we regard as ultimately viable are for the PM to present a deal to the [House of] Commons and secure approval for it, resign and let someone else make the extension request as PM, or back away from his stated position", Barr said in a note. "At this point, our view is that resignation is the most likely of these three".

Opposition lawmakers and the 21 Tory rebels who allied with them approved the bill, stating that Johnson has to ask for another Brexit delay in order to prevent a no-deal. The head of government said that he would not seek an Article 50 extension.

Britain's Prime Minister Boris Johnson speaks in the House of Commons in London, Britain

© REUTERS / Jessica Taylor

The PM, who has repeatedly vowed to exit the EU with or without a deal, previously urged lawmakers to vote for an early election, but the opposition said that it would do so only if the no-deal option is scrapped, which Johnson has refused to do.

In the meantime, Johnson ordered a prorogation of Parliament until 14 October, when MPs will reconvene to hear a speech by the Queen on Brexit.