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Bank of England boss Carney warns that Brexit is “biggest domestic risk to financial stability”

8th March 2016


The Bank of England governor Mark Carney has warned that Britain leaving the EU is the single “biggest domestic risk to financial stability”.

Speaking to MPs at the Treasury select committee today, Carney stressed that he did not want to take sides in the Brexit debate, however, his comments have angered many who are on the side of Britain leaving the Union.

Conservative MP and Treasury select committee member Jacob Rees-Mogg accused Carney of making “pro-EU” comments.

In a letter sent to Treasury Committee chairman Andrew Tyrie, Carney said that Britain’s membership of the EU had reinforced the “dynamism of the UK economy”, and helped the UK to grow, but denied being “pro-EU”.

Rees-Mogg said: “It is speculative and beneath the dignity of the Bank of England to be making speculative, pro-EU comments.”

He said the positive impact of EU membership that Carney earlier outlined could just as easily be attributed to reforms made by Margaret Thatcher.

He accused the Bank of England governor of “political partisanship” over Europe.

Carney said Rees-Mogg’s criticisms of him were “wholly unfounded”, adding: “With respect, what concerns me is your selective memory.”

He insisted that he had not discussed the comments he would make on EU membership with the Prime Minister ahead of the select committee hearing.

You can watch an excerpt of the heated debate on the BBC’s website.

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