The governor of the Bank of England has said that Britain’s membership of the EU has re-inforced the “dynamism of the UK economy”.
In a pre-hearing letter to the Treasury Committee, Mark Carney said that the relationship had helped the UK to grow.
In a sometimes fractious exchange with MPs on the committee, Mr Carney denied claims he was “pro-EU”.
Conservative MP Jacob Rees-Mogg accused him of making “pro-EU” comments “beneath the dignity of the Bank”.
Mr Carney emphasised that the Bank was not taking sides in the EU referendum.
“We will not be making, and nothing we say should be interpreted as making, any recommendation with respect to that decision,” he said.
Mr Carney appeared in front of the cross-party Treasury Committee to discuss the economic and financial costs and benefits of the UK’s EU membership, ahead of the referendum on 23 June.
Referring to a Bank of England report on the EU, Mr Carney concluded that EU membership had “likely increased the dynamism of the UK economy and correspondingly its ability to grow without generating risks to the Bank’s primary objectives of monetary and financial stability”.
However, Mr Rees-Mogg said this could be attributed to reforms made under Margaret Thatcher.
“It is speculative and beneath the dignity of the Bank of England to be making speculative, pro-EU comments,” Mr Rees-Mogg said.
If Britain votes to leave the EU, Mr Carney said the Bank “will do everything in our power to discharge our responsibility to achieve monetary stability and financial stability”.
He said that there were measures that the Bank of England could take in the short term to support the financial system but said he could not rule out the possibility that there could be issues with stability.
Commenting on the short-term impact of an EU exit, Mr Carney said: “There could be lower levels of activity …read more
Source:: BBC UK