What does the Bank of England think about the risks – or opportunities – of a vote to leave the European Union? On Tuesday, its top officials will face a grilling from MPs on the Treasury Select Committee on the topic.
BoE officials have spent months trying not to be drawn into the issue but in nearly three hours of questions ahead, govenor Mark Carney was repeatedly put on the spot. The Treasury Select Committee is also sharply divided between committed outers and inners who were all keen for material to support their campaign. Appearing are BoE governor Mark Carney and deputy governor for financial stability Jon Cunliffe.
- Mr Carney says the BoE will not be making a recommendation as to which way to vote: “We will not be making, and nothing we say should be interpreted as making, any recommendation with respect to that decision.”
- But in its written submission the BoE says that the settlement reached by David Cameron “addresses the issues the Bank identified as being important”.
- He also categorizes Brexit as the “biggest domestic risk to financial stability”
- BoE is not forecasting the impact of Brexit on either jobs or prices, Mr Carney says
- There would “without question” be a loss of business in the City of London if the was to leave and can not negotiate mutual recognition to replace the current EU bank passport
- Mr Carney refutes any suggestion he has been leaned on by the government to give a pro-EU view. “My signature is on the letter, these are my views”.
- In a sharp exchange, Eurosceptic MP Jacob Rees-Mogg accuses Mr Carney of pushing pro-EU arguments. Mr Carney says he will not let that stand.
By Chris Giles, Economics Editor and Emily Cadman, Economics Reporter