Of the three main options facing Boris Johnson, the most likely outcome is that he will resign, leaving a new prime minister to go to the EU and request a Brexit extension, JP Morgan said today.
In a research note sent to clients, JP Morgan’s head of UK economics Malcolm Barr outlined the “only options” for Brexit that the investment bank now regards as realistic.
“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.
“At this point, our view is that resignation is the most likely of these three,” he added.
Last night Johnson prorogued Parliament for five weeks until 14 October, meaning MPs will return to the Commons just two weeks before the current Brexit deadline of 31 October.
During yet another dramatic night in the Westminster, Johnson was once again defeated in his bid to call an early general election as he failed to win the backing of two thirds of MPs.
A bill demanding the prime minister return to Brussels to seek a delay if he cannot get a Brexit deal through Parliament by 19 October also became law yesterday.