Bank of England's Carney spells out no-deal Brexit hit to UK

* Carney says Brexit "first test of a new global order"

* Says weaker pound would not mask hard Brexit hit to income

* Global growth likely to stabilise - Carney

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By David Milliken and Andy Bruce

LONDON, Feb 12 (Reuters) - Bank of England Governor Mark

Carney warned on Tuesday of the potential shock to Britain's

economy from Brexit which could serve as an "acid test" for

countries around the world trying to respond to the challenges

of globalisation.

The United Kingdom is on course to leave the European Union

on March 29 without a deal, unless Prime Minister Theresa May

can convince the bloc to amend the deal she agreed in November

and then sell it to sceptical British lawmakers.

"We shouldn't be under any illusions," Carney said,

answering audience questions after a speech at a Financial Times

event. "A no-deal, no-transition Brexit would be an economic

shock for this economy ... and it would also send a signal

globally about the prospects of refounding globalisation."

"In many respects, Brexit is the first test of a new global

order and could prove the acid test of whether a way can be

found to broaden the benefits of openness while enhancing

democratic accountability," he said.

Carney said a successful Brexit deal could lead to a new

form of international trade built on a better balance between

local and supranational interests.

But a no-deal Brexit would hit living standards in Britain,

at least in the short term, and a fall in the value of the pound

would not solve the economy's problems as suggested by some

Brexit supporters.

"That's part of the necessary adjustment mechanism but it is

not a step to prosperity. It is a hit to income," Carney said.

SLOWDOWN

Carney, a Canadian, has previously warned of the risks that

Brexit poses to the United Kingdom, the world's fifth-biggest

economy, earning him the ire of some anti-EU campaigners.

"People are tired of Carney's gloomy, inaccurate,

anti-Brexit predictions," said Richard Tice, co-chairman of

campaign group Leave Means Leave. "Does he want us to fail so he

is proven right? It's time he resigned and went home."

By contrast, John McDonnell, the would-be finance minister

of the main opposition Labour party, said Carney's remarks

showed why the government should take a no-deal Brexit off the

table.

Most of Carney's speech focused on the outlook for the

global economy. He said growth was likely to stabilise at a new,

slower pace, although China, trade wars and rising protectionism

threatened the "delicate equilibrium".

Britain could be seen as a "leading indicator" of a reversal

of globalisation and if that uncertainty took hold elsewhere, it

could undermine the global economy, Carney said.

Rising debt in China was also a "significant and growing"

risk. But the most likely outcome was that the world economy

would not slow much further, he said.

"While there are pockets of risk and global growth is still

decelerating, the combination of the policy response and the

state of the current imbalances in advanced economies suggest

that global growth is more likely than not to stabilise

eventually around its new, modest trend," Carney said.

He also took a swipe at U.S. President Donald Trump who said

trade wars were "good, and easy to win" last year. "Contrary to

what you might have heard, it isn’t easy to win a trade war,"

Carney said.

(Writing by Andy Bruce;

Editing by Gareth Jones and Alison Williams)