That Mark Carney Speech

Brexit vote may spark recession, Mark Carney warns

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".

Prime Minister David Cameron said the warning amounted to "a very clear message" of the dangers of Brexit.

Vote Leave campaigners have strongly criticised Mr Carney, with one calling for him to resign.

However, a spokesman for Mr Carney rejected the call, saying the Bank had "a duty" to make its judgements known.

In case you missed the speech here is a snippet -

The latest minutes from the Bank's Monetary Policy Committee (MPC) said that a leave vote may cause both growth and sterling to fall and unemployment to rise.

Mr Carney said the Bank had not compiled formal forecasts about the possibility of a recession - defined as two consecutive quarters of negative growth - resulting from a Brexit vote.

Chancellor George Osborne said the UK now had a "clear and unequivocal warning" from the MPC as well as the Governor of the Bank of England about the risks of a Leave vote,

"The Bank is saying that it would face a trade-off between stabilising inflation on one hand and stabilising output and employment on the other," he said.

"So either families would face lower incomes because inflation would be higher, or the economy would be weaker with a hit to jobs and livelihoods. This is a lose-lose situation for Britain. Either way, we'd be poorer."

Jacob Rees Mogg, a Tory MP and Treasury Select Committee member, called on Mr Carney to resign.

"I think it is unprecedented for the governor of a central bank to suggest that people should short his own currency. Suggesting sterling will fall sharply is simply not what responsible central bankers do," he said.

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