‘BREXIT IS LIKE ANOTHER 9/11’
Top Bank economist says vote was similar shock
A TOP Bank of England official yesterday compared Brexit to the September 11 terror attacks.
Ian McCafferty, who helps decide UK interest rates, likened the impact of the Leave vote to the 2001 atrocities, which killed nearly 3,000 people.
Explaining why polls showed a loss of confidence by firms in the referendum aftermath, he said it was a “once in a lifetime event, such as 9/11”.
He told the MPs’ Treasury Select Committee he would class the result as “an unusual if not almost unique shock to the economy”.
Mr McCafferty, a former chief economic adviser at the Confederation of Business Industry, added: “We’ve seen some other different but similar unusual shocks such as 9/11, such as the East Asian crisis of 1997. At those specific periods… business surveys can give you somewhat misleading signals.” Labour Committee member John Mann told the Mirror the September 11 comparison was “not his smartest comment”, adding: “I’m sure he will want to quickly withdraw.” Governor Mark Carney defended the Bank’s predictions over Brexit. And he believed the Bank had not received enough credit for emergency actions after the referendum.
Following the bombshell result, interest rates were slashed to their lowest ever level of 0.25% and £60billion was pumped into the economy.
“If we hadn’t done that there would have been macro-economic consequences… we just have to accept we are never going to get any credit for it, but I’m glad we did it,” he said.
Change Britain’s Chloe Westley said: “It’s time those predicting economic disaster admit their mistakes.”
However EU boss Jean-Claude Juncker yesterday warned Britain can expect a “very hefty” bill for Brexit.
INDUSTRY will today warn PM Theresa May her threat to walk away from the EU without a trade deal could damage the UK for 30 years.
BREXIT will be many things and people who voted for us to stay in the European Union reckon they will mostly be negative.
Shop prices might rise, living standards fall, jobs be lost, manufacturing hit hard, travel restrictions imposed, bureaucracy intensified and our nation’s clout in the world diminished. All are possible, although Brexiteers would argue otherwise.
But comparing Brexit to 9/11 when terrorist assassins killed more than 3,000 people by making jets flying bombs is wide of the mark.
We appreciate the former CBI adviser Ian McCafferty, a member of the Bank of England committee setting interest rates, was referring to the economic shock of exiting the EU. But now let’s all try to calm down and be analytical.