Friday, May 13, 2016

UK Central Bank Warns ‘Brexit Could Trigger Recession’

 
The Bank of England has stepped up its warnings about the economic risks if Britain votes to leave the European Union.

In his starkest statement yet UK central bank Governor Mark Carney said the economy would slow “materially”, even falling into recession, that the pound could lose value “sharply” and unemployment would probably rise.

He told reporters after a meeting of the bank’s Monetary Policy Committee: “Material slowdown in growth, notable increase in inflation, that’s the MPC’s judgement. It’s a judgement not based on a whim, it is the judgement based on rigorous analysis and careful consideration. Of course there’s a range of possible scenarios around those directions which could possibly include a technical recession.”

A technical recession is two consecutive quarters of GDP decline. 

Click here for the full article.

Source: Euronews

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