Leave or stand as MP, Bank boss told

A TORY MP yesterday urged Bank of England boss Mark Carney to quit over “project hysteria” warnings on the risks of a no-deal Brexit.

James Duddridge said his comments about Theresa May’s Brexit deal were “highly political” and discredited the independence of his role, adding: “He should resign and stand as an MP if he wants to take a political view.”

Mr Duddridge’s comments follow those of senior Tory Jacob Rees-Mogg, who accused Mr Carney of turning the “project fear” campaign into “project hysteria”.

Mr Carney faced an angry backlash when he said quitting the EU without a deal could lead to the deepest recession for 100 years.

But yesterday he intensified his warning, saying “less than half of businesses” were ready for a no-deal Brexit.

Mr Carney told BBC Radio 4’s Today programme: “We know from our contacts with business, others know from their contacts, that less than half of the business in the country have initiated their contingency plans for a no-deal Brexit.

“All the industries, all the infrastructure of the country, are they all ready at this point in time? As far as we can tell, the answer is no.”

Mr Carney also hit back at those who accused the Bank of scaremongering after it said a no deal would result in an eight per cent cut in gross domestic product, unemployment surging by as much as 7.5 per cent and house prices falling by almost a third.

He said: “We have a responsibility to have systems ready for whatever happens.”

Asked what type of Brexit he would like, Mr Carney said he did not have a preference, other than to see a transition period agreed.

“From a financial system perspective, something in the 18 to 24 months is sufficient,” he said.

Mr Carney spoke after the Bank of England released analysis on Wednesday suggesting the UK would be tipped into a deeper recession than the 2008 financial crisis if it left the EU with no agreement in place.