Carney causes controversy!

The Bank of England governor Mark Carney caused controversy yesterday as he warned about the consequences of Brexit.  He claimed that a vote to leave the European Union could plunge Britain into recession. Mark Carney added that it was his responsibility to communicate Brexit risks to the British public to defend the independent role of the Bank of England.  He said that it is not easy to make any judgements about the long term impact of Brexit, but he stated that there’s room to lower interest rates if needed. During the press conference, Governor Carney said "A vote to leave the EU could have material effects on the exchange rate, demand and supply potential".  He also said that the impact "could possibly include a technical recession. His comments sparked furious comments and criticism for what many consider a step too far in the Brexit debate. As widely expected, the BoE left policy on hold with interest rates at 0.5% after a unanimous 9-0 vote following its latest MPC meeting.  They also downgraded growth forecasts for the UK by one or two tenths in each of the next three years whilst the inflation forecast changed very little despite the downbeat tone. Sterling recovered its initial losses quickly.

Enjoy the weekend!