Daily Express

Bank fears that leave vote will cause pound to plunge

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BANK of England boss Mark Carney has triggered a political row by claiming that leaving the EU could tip the UK into “technical recession”.

The warning was echoed by the Bank’s quarterly inflation report which said that Brexit would cause the pound to plunge further.

The report added that inflation and interest rates were likely to rise for households and businesses, while UK growth could “materially” suffer as the public and companies reined in their spending.

The Bank’s rate-setting Monetary Policy Committee, which yesterday voted unanimousl­y to keep its interest rate at 0.5 per cent – where it has been since March 2009 – said it would “take whatever action was needed” after the June 23 referendum.

If the British people voted to leave the EU there would be a difficult “trade-off” between bringing inflation down and supporting growth, the report claimed.

The Bank’s interventi­on was attacked by pro-Brexit campaigner­s as a blatant attempt by the Remain camp to scare the British people.

Conservati­ve MP Jacob ReesMogg last night said Mr Carney should be fired for “intervenin­g speculativ­ely”.

And Conservati­ve former Chancellor Lord Lamont said: “The Governor should be careful that he doesn’t cause a crisis.”

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