EU mem­ber­ship strength­ens eco­nomic 'dy­namism': BoE

The Pak Banker - - FRONT PAGE -

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.

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