Thursday, 12 May 2016

Cheek of the Governor

Bank of England Governor Mark Carney's warning that Britain could be forced into "technical recession" if it leaves the EU has sent a "very clear message" of the risks of Brexit, and appears to be a message straight from Downing Street. In the same breath Carney said it was his duty to be transparent, I think we can see through his transparency.

Supporters of EU leave campaigns accused the Governor of risking a self-fulfilling crisis, as the London markets fell on the Bank's warnings of depressed growth, increased inflation and unemployment and a fall in the value of the pound if Britain votes for Brexit on June 23.

The FTSE 100 closed at a five-week low, down 58.30 points, or 0.95pc, to 6,104.19 after Bank of England governor Mark Carney warned the British economy could fall into recession if the country voted to leave the European Union. Carney certainly knows how to back the odds. The market jitters prompted another dash to safe-haven assets. Gold producer Randgold Resources 1.2pc to £61.70. On the mid-cap index, Polymetal International surged 11.8pc to 780p. The precious metal miner also benefited from a rating upgrade after Goldman Sachs lifted it to “buy” from “neural”.

Speaking after the publication of the latest quarterly inflation report from the Bank's Monetary Policy Committee, the Governor said that Brexit could "materially" hit UK growth and cause the pound to fall "sharply" and inflation to spike, while the economy would suffer as households and businesses reined in spending.

Mark Carney pointed out that the MPC [Monetary Policy Committee] was 100% behind the analysis that a "Technical Recession" was possible after Brexit, how desperate are the remain campaign?

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