A vote for Brexit is likely to cost jobs, raise prices and see the pound fall sharply, the Bank of England has warned in its quarterly inflation report on Thursday in its most outspoken comments to date on the consequences of the EU referendum. For once the Bank of England’s quarterly inflation report is not about the forecast or the outlook for interest rates – which have been kept on hold – it is about the tone Governor Mark Carney takes today as he presents the central bank’s latest update.
By Emily Cadman and Mark Odell
Carney warns Brexit “could possibly” lead to a “technical recession”
Carney says the Bank “did not develop a full projection” for a Leave vote
Governor refuses to be drawn on any potential upside of Brexit
After a month of silence from the Bank of England as a result of the pre-election purdah for public bodies, Governor Mark Carney today presented the central bank’s quarterly inflation report.
By John Aglionby and Emily Cadman
Mark Carney has been given a pretty weighty task as he starts his tenure as governor of the Bank of England. In recent weeks, almost every time the chancellor or one of his aides has been asked about the prospects for growth, he has mentioned Carney and his track record of boosting the economy through unusual monetary policy tools.
Already we may have started to see signs of this, with Carney’s highly unusual first statement in which he said expectations of interest rates in 2015 were “unwarranted” – in effect a guarantee of long-term low rates.
But Lord Mandelson, Labour’s former business secretary, and a prominent pro-European, wants Carney to pay attention to what is happening on the other side of the channel too. Read more