LONDON (Reuters) – Governor Mark Carney said on Thursday the Bank of England could not be expected to nullify the likely hit to the economy from Brexit, although it could influence how that hit is spread across Britain.

Hosting an event celebrating the 20th anniversary of the BoE’s independence from government, Carney said Britain’s economic prosperity would hinge on the final arrangements for its divorce with the European Union, as well as the government’s fiscal policies.

“Even though monetary policy cannot prevent the weaker real income growth likely to accompany the transition to new trading arrangements with the EU, it can influence how this hit to incomes is distributed between job losses and price rises,” Carney said in the text of his speech.

Prime Minister Theresa is due to speak after Carney in a speech in defence of free markets and fiscal prudence.