EU referendum: Mark Carney denies Bank of England is ‘biased’

Mark Carney said there was no political bias at the Bank. Picture: PA

Mark Carney said there was no political bias at the Bank. Picture: PA

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Bank of England governor Mark Carney has denied giving out Treasury Brexit “propaganda” and said it was his job to “come straight with the British people” over the risks.

In a heated Treasury select committee grilling, pro-Brexit MP Jacob Rees Mogg accused Mr Carney of being “politically involved” and colluding with Chancellor George Osborne on warnings over the economic impact of a vote to leave the EU.

But Mr Carney said there was no political bias at the Bank and defended its recent warning that a Brexit vote could trigger a UK recession, send the pound lower and lead to higher borrowing rates.

The hearing comes after a controversial Treasury report on Monday claimed a Brexit could see the UK fall into a technical recession.

Mr Carney insisted there was “no possibility of undue influence coming from the Treasury” and said the Bank had a responsibility to warn the Chancellor and public about the economic risks of a Brexit.

He said: “It’s important to come straight with the British people about that.

All nine members of the Bank’s monetary policy committee, which sets interest rates, agreed a Brexit could have a “material” impact on growth and inflation, Mr Carney told MPs.

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