Touching upon the London-Brussels talks on Britain's withdrawal from the EU in an interview with the BBC, Bank of England Governor Mark Carney warned that "the possibility of a no [Brexit] deal is uncomfortably high at this point."
"People will have things to worry about in a no deal Brexit, which is still a relatively unlikely possibility but it is a possibility," he stressed, describing the scenario as "highly undesirable."
Carney urged both sides to "do all things to avoid it [ a no-deal Brexit], warning of far-reaching repercussions, including "disruption to trade as we know it."
"As a consequence of that, a disruption to the level of economic activity, higher prices for a period of time," he added.
The statement came a few weeks after UK International Trade Secretary Liam Fox cautioned that EU leaders forcing Britain into a no-deal Brexit scenario will invite a negative "consequence for their economies."
Underscoring the need "to have a people's Brexit, not a bureaucrats Brexit," he warned that the possible no-deal scenario will have a negative impact on the "economic prosperity and well-being" of EU citizens.
The Brexit negotiations between London and the EU kicked off last year and are due to be wrapped up before the end of March 2019.