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Bank of England warns about Brexit dangers, and triggers major controversy
The Bank of England has given its starkest warning yet that a UK vote to leave the EU could hit the economy. Mark Carney, the Bank's governor, warned that the risks of leaving “could possibly include a technical recession”. Read full article
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Disclaimer & comment rulesWhat major controversy? The Governor's statement was widely reported but that was yesterday - today it's gone away!
May 13th, 2016 - 03:06 pm - Link - Report abuse 0”A prudent governor would simply have said that 'we are prepared for all eventualities'.”
May 13th, 2016 - 03:28 pm - Link - Report abuse 0In other words, say nothing whatsoever and withhold the BoE's professional assessment of the impact.
That doesn't sound responsible, either.
Personally, I think the UK has a lot to lose by submerging themselves in the EU and being dragged down to the lowest common denominator.
This is likely their last chance to bail, before too many changes are made.
One wonders whether Carney is, by nature, conservative with a small “c”. And how much his comments have been prompted by those of Lagarde. Interestingly, there's an article today giving 12 reasons why no attention should be paid to what Lagarde has said.
May 14th, 2016 - 07:43 am - Link - Report abuse 0The most important feature after Brexit will be the attitude and actions of the people. The people will need to be alert to financial institutions and employers taking regressive steps without justification. Brexit will mean that additional money will be available. Brexit will mean that Brussels rules and regulations can be junked unless worth can be seen in them. There would, for example, be opportunities to widen Britain's trade. It is often overlooked that trade can take more than one form. It is easy to view British trade as being composed of manufacturing goods and then exporting them. But there are still options, particularly with smaller countries, to take goods from country A to country B where there is a market, and then taking exchange goods from country B to country C. Creating a chain of transactions. At one time, Britain had the largest merchant fleet in the world. Nowadays that could be replaced by both waterborne and airborne transport. And, within the UK, there should be more emphasis on suitable goods being transported by rail rather than on the roads. Easing the strain on Britain's road system by making the majority of goods transportation short-haul in smaller vehicles. Making best use of containerisation and the roll-on, roll-off concept. What about increased use of air transport generally and helicopters in particular? It just needs vision and the will to succeed.
#3
May 14th, 2016 - 01:07 pm - Link - Report abuse 0Yes. you are partly right BUT how would our erstwhile trading partners react to our going solo and how would the money markets view Sterling.
A lot of imponderables.
I would say much like now. Trade will continue. How do the money markets view the Swiss Franc, Japanese Yen or Australian Dollar?
May 14th, 2016 - 01:30 pm - Link - Report abuse 0Do you really think the EU will close itself off from the UK?
#5
May 14th, 2016 - 04:44 pm - Link - Report abuse 0Of course not BUT they are not the arbiters of currency rates.. Markets often react irrationally to events. How will they view the pound Sterling if the UK leaves the EU. Who knows.
@3 Conq
May 14th, 2016 - 05:09 pm - Link - Report abuse 0You would be correct to assume that Carney is a 'small c' conservative.
He is duty bound to warn the UK of impending economic trends, even though his lack of confidence could be interpreted by some as a self-fulfilling prophecy.
I believe it was Carney who presided over a Bank of Canada with very conservative economic and mortgage policies, leading up to 2008.
While the US financial institutions, and much of the rest of the world, had the rug pulled out from under them, Canada's banks were stable and not over-extended.
Do you really think the EU will close itself off from the UK
May 14th, 2016 - 07:05 pm - Link - Report abuse 0NO full stop,
far to much threats and scare mongering,
the in side seems very desperate,
as for me, I will vote leave.
Governors job is purely to maintain stability, no more & no less. Problem is that his comments may, of themselves, actually cause instability. Carney justifies this on the basis of highlighting risk to UK economy being part of his remit. However, he did not also counter balance the risk of remaining in EU due to the inherent structural flaws of the Eurozone ?
May 15th, 2016 - 02:30 pm - Link - Report abuse 0La Garde on the other hand definately doing favours for her old mate George as did Obama for Cameron.
In 1975 when we stayed in EEC we didn't know what we were letting ourselves in for. Now we have no such excuse & know exactly what an EU future holds - a Superstate where democracy is irrelevant and nations no longer truly exist. Accordingly Leave is the only option for genuine democrats.
@10 McGregor,
May 15th, 2016 - 05:27 pm - Link - Report abuse 0Is Carney's assessment of the situation, one-sided or not balanced.
Perhaps, but predicting the future economic condition is not reliable. Point taken though, Carney has not commented on staying. If he believed staying was not a good idea, would he have given a warningbabout leaving?
Perhaps he tried to give a warning without making a political statement or endorsement.
We will likely never know.
Personally, I think the UK should take this opportunity to leave.
Agreed.
May 15th, 2016 - 06:45 pm - Link - Report abuse 0Commenting for this story is now closed.
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