BOE Governor Defends His Brexit Risk Warning

May 24, 2016 Share Print 0

Bank of England governor Mark Carney has robustly defended his stance on the UK’s EU referendum debate and accused one of his prominent critics of trying to “undermine” the Bank’s remit.

The comments came in testy exchanges during Mr Carney’s evidence to the Treasury select committee.
Mr Carney was answering questions from Jacob Rees-Mogg, who favours Brexit.

He said the Bank had a responsibility to the British people “who don’t want risks kept from them”.
Earlier this month, the Bank of England gave its starkest warning yet that a UK vote to leave the EU could hit the economy.

Mr Carney warned that the risks of leaving “could possibly include a technical recession”.
Vote Leave campaigners strongly criticised Mr Carney, with Mr Rees-Mogg calling for him to resign.

During the hearing, Mr Rees-Mogg argued that the Bank of England would not comment on opposition economic policy during a general election campaign, so should not comment on the effects of a UK departure from the EU during the referendum campaign.

via BBC

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.