EU membership strengthens economic 'dynamism': BoE
Britain's membership of the European Union reinforces the country's economic "dynamism" but leaves it more exposed to financial shocks, Bank of England governor Mark Carney said Tuesday.
Carney expressed the view in a letter to the head of the Treasury Select Committee before facing questions from the cross-party panel of lawmakers on Britain's relationship with the EU ahead of June's referendum on whether the country should remain part of the bloc. The Canadian national wrote that "membership reinforces the dynamism of the UK economy", according to a copy released by the bank.
He added: "A more dynamic economy is more resilient to shocks, can grow more rapidly without generating inflationary pressure or creating risks to financial stability and can also be associated with more effective competition".
Later addressing MPs, Carney insisted that his comments were not a recommendation for remaining part of or leaving the EU. On Monday, the Bank of England said it would make extra cash available to banks around the time of the referendum.