The Bank of England has given its blatant warning yet that the UK could vote to leave the EU, met the economy.
A leave vote cause sterling to fall and unemployment to rise, according to the latest minutes of its monetary policy Committee (MPC). Mark Carney, the Bank Governor warned that the risks “, could possibly even a technical recession.”
Vote, Leave, said, there is no need for more forward guidance of the Bank.
The Bank had not defined compiled formal forecasts about the possibility of a recession – as two consecutive quarters of negative growth– that of a British EU exit vote, Mr Carney.
Chancellor George Osborne said the UK now had a “clear and unambiguous warning” from the MPC, as well as the Governor of the Bank of England about the risks, the vote on a holiday.
“The Bank says, there is a trade-off between stabilising inflation on the one hand, and the stabilization of output and employment on the other would,” he said.
London – “So, either families compared to lower income because the inflation would be higher, or the economy is weaker with a hit to jobs and livelihood. This is a lose-lose situation for the UK. One way or the other, we would be the poorer.”
Lord Lamont, the former Chancellor and the Vote spokesman, said: “The Governor should be aware that he is not the cause of the crisis. If his words unwise, self-fulfillment, the responsibility of the governor and the governor’s alone. A prudent Governor would have simply said, “we are prepared for all eventualities’.”
The Bank’s latest quarterly Inflation Report, released on Thursday, predicted that economic growth would slow in the second quarter of the year, but pick up in the second half. It also cuts the growth Outlook for the next three years.
BrexitThe report also predicts that the inflation to 0.9% in September, remained longer than in the UK in the EU.
To keep the MPC unanimously, the payment of interest, at 0.5%.
The Inflation Report said that the uncertainty about the EU referendum already weighing on the economy: “There is evidence that a significant part of the decline of 9% in pound sterling exchange rate since its peak in November, was able to reflect on the referendum effects.
“It is difficult to assess how much of the slowdown reflects can consist of a loss of basic dynamics, and so forth, and how much is likely to relax, when uncertainty occurs after the referendum. Referendum effects also make it difficult to interpret economic indicators over the next few months.”
BrexitNick Stamenkovic, strategist at RIA Capital Markets, said: “The clear message from the Bank of England is that they are not in a hurry to do anything until you assess the impact that the result of the referendum on the economy.”
The inflation found, however, to stimulate that in the case of a licence, the voice of the MPC decides would reduce the difficult choice of rising interest rates, taxes, inflation, or the economy.
The report said that inflation fell back to 0.3% in April from 0.5% in March, what are the cases in oil and food prices in the past year, and the strength of the pound sterling in the same period.
It is inflation expected to return to the target 2% until mid-2018, as these factors disappear.