Bank of England warns against leaving the EU

Following pressure from the government to “set out the facts, set out the figures so people can make a judgement” Mark Carney, the governor of the Bank of England, warned on Tuesday of the possible consequences if the UK is to leave the European Union following the referendum due on the 23rd of June this year.

Although Carney maintained that he was not making any recommendation on how to vote, his comments are not likely to be supported by the euro-sceptics.

Carey did not comment on the long-term impacts of the results of the referendum for the economy but he did state that the short-term impacts would result in a hit to the country’s growth and would lead to a vast reduction in foreign investment.

Carney told lawmakers in British parliament: “One would expect some activity to move. I’d say a number of institutions are contingency planning for that possibility.”

Such comments were not taken lightly from those in support of the Brexit campaign, with Conservative Party member Jacob Rees-Mogg saying it was “beneath the dignity” of the Bank of England to make “speculative” comments about Britain’s membership to the EU, and believed Carney was damaging the banks reputation.

He has since felt support after attack from euro-sceptics following his seemingly pro-EU comments. “Mark Carney waded into the Brexit debate and emerged unscathed, defending the integrity of the Bank of England from accusations of bias from lawmakers, while highlighting the risks of the Brexit.” said Ranko Berich, head of market analysis at Monex Europe.


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Safiya focuses on business and political stories for UK Investor Magazine. Her interests include international development, travel and politics.