Talking to journalists after the Bank unanimously voted to hold the base rate at 0.50%, Carney said a Brexit would impact growth, demand and unemployment and the impact “could possibly include a technical recession”.
Leaving the European Union could plunge the UK into recession in the second half of the year, Mark Carney has said.
Talking to journalists after the Bank unanimously voted to hold the base rate at 0.50%, Governor Carney said a Brexit would impactgrowth, demand and unemployment and the impact “could possibly include a technical recession”.
By "technical recession" Carney specified that he meant two quarters of negative growth after the June referendum.
As revealed in today's minutes the Monetary Policy Committee ruled that leaving the EU would lead to a a “materially lower path for growth”, higher unemployment and inflation, lower asset prices and "sharp" declines in sterling.
Carney said the MCD is more likely to raise the base rate rather than cut it from where it stands at 0.50%.
