BOE’s warning that Brexit could lead to recession is ‘dangerous intervention’: Brexit minister
The Bank of England’s warning that leaving the EU could lead to a recession is an “incredibly dangerous intervention” that has increased financial instability, a Tory minister campaigning for Brexit has said.
Andrea Leadsom, a Conservative energy minister, accused the Bank’s governor, Mark Carney, of disrupting the markets and jeopardising his independence, after he argued last week that leaving the EU could lead to a financial downturn in the short term.
In the face of fury from the leave camp, Carney defended his impartiality, saying it was important that people do not ignore economic risks. He was swiftly backed by George Osborne, the chancellor, who tweeted that he agreed with the governor that those “telling voters EU exit will have no impact on economy are in denial”.
On Thursday, Carney had said Brexit could send the pound sharply lower, stoke inflation and raise unemployment, leaving the Bank with a difficult balancing act on interest rates.
His comments infuriated leave campaigners, who responded by accusing the Bank of having a chequered record on forecasting.
But Leadsom went further on the BBC1’s Andrew Marr Show on Sunday, claiming Carney had destabilised financial markets just weeks before the June referendum and had increased the chance of self-fulfilling prophecy.
She said that “to get involved in what might happen, that’s just not in their remit”, adding: “They are not there to promote financial instability but that is what they’ve done.
“It is institutional ganging up on the poor British voter who is trying to get a decent primary school place and doctor’s appointment.”
The Bank of England governor had “come out with some nonsense that is totally unjustifiable, totally speculative stuff” and predicted that he would be wishing that he had not done it, she said.
Jacob Rees-Mogg, a backbench Tory MP, said Carney should be fired and had become highly politicised in what was meant to be an impartial role.
