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Bank of England governor Mark Carney: pound will plummet if UK votes for Brexit

By Staff Reporters

Published 17/06/2016

Bank of England chief Mark Carney
Bank of England chief Mark Carney

A Brexit vote is likely to send the pound plummeting as pre-poll jitters are already hitting the housing market, the Bank of England has warned.

The intervention came as the Bank's governor, Mark Carney, insisted he had every right to comment on the economic impact of withdrawal after being accused of breaking impartiality rules by a leading Leave campaigner.

The Bank insisted it is "increasingly probable" a Leave vote in next week's referendum would sharply damage the value of sterling across international money markets.

Financial experts warned uncertainty about the outcome of the poll was already forcing consumers to put off major economic decisions and provoking a slowdown in house and car sales.

The Bank insisted the referendum remained the "largest immediate risk" facing financial markets, as its Monetary Policy Committee decided to hold rates at the 0.5% level they have been at since March 2009.

The latest foray into the increasingly bitter referendum debate came after an angry war of words exploded between Mr Carney and prominent Tory MP and Leave campaigner Bernard Jenkin.

Mr Jenkin said Mr Carney's intervention in the referendum debate had gone "way beyond what a Bank governor would normally do in terms of making statements about rate setting and economic forecasts".

Belfast Telegraph

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