Bank Governor ‘Serene’ Over Brexit Warnings


The governor faced a grilling from MPs over claims that he overegged the danger that Britain would face from a “Leave” vote and overreacted to the outcome.

But Mr Carney said: “I am absolutely serene about the comments, the judgments, made both by the MPC [Monetary Policy Committee] and the FPC [Financial Policy Committee].”

He defended the measures put in place by the Bank “to help make the leaving of the European Union a success as quickly as possible”.

Mr Carney had warned prior to the vote that a Brexit outcome could lead to a slowdown and possibly see the UK slide into recession.

Shortly after the poll the Bank acted to ease market turmoil by making available £250bn in funding while the Bank’s FPC eased rules for banks to allow them to lend £150bn more to households and businesses.

Then last month, the rate-setting MPC slashed interest rates to a new historic low of 0.25% and expanded its quantitative easing (QE) stimulus programme to £435bn.

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Mr Carney told the Commons Treasury Select Committee that the Bank’s actions had a major impact in stabilising the economy support the housing market.

He was responding to claims put to him by Andrew Tyrie, chairman of the committee, that he had “overegged” the scenario facing the economy after a Brexit vote.

The governor was accused by arch-critic Jacob Rees-Mogg, the pro-Brexit Tory MP, of making “dire warnings”.

It comes after latest figures suggest that key sectors of the economy bounced back strongly in August after being hit by an initial shock post-referendum shock in July.

The indicators have prompted suggestions that the Bank may have acted prematurely by unleashing a major stimulus package to cushion the economy.

But Mr Carney told MPs: “I absolutely feel comfortable with the decision I supported and the committee took in August to supply monetary policy stimulus.”

News Source SkyNews

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