Bank’s loans ‘in case of Brexit’

THE Bank of England was last night accused of scaremongering after offering emergency cash to Britain’s biggest lenders ahead of the EU referendum.

In an unprecedented move, the central bank announced it is taking extra precautions to ensure the June 23 vote does not spark another banking crisis.

In a statement issued after markets closed yesterday evening, it said it will offer extra loans to banks and building societies so they can protect themselves against turmoil on financial markets.

Insiders stressed this was merely a precautionary measure, and that it is not predicting a meltdown if the British public votes to sever ties with Brussels. But furious Eurosceptics accused the central bank of colluding with Downing Street’s campaign to remain wedded to the EU.

Eurosceptics last night questioned Bank governor Mark Carney’s impartiality.

Ukip MP Douglas Carswell, a prominent member of campaign group Vote Leave, said: ‘We can now see vividly that the big corporate banks and the Bank of England are aligned with Project Fear.’

Last night, pro-Brussels campaigners hailed the Bank of England’s intervention. Will Straw of Stronger In said: ‘When the Bank of England issues this kind of warning, everyone should sit up and listen.’