Bank of England's Carney hits back at critics of Brexit scenarios

Bank of England's Carney hits back at critics of Brexit scenarios

Bank of England's Carney hits back at critics of Brexit scenarios

On food prices, Mr Carney told MPs: "In the most extreme scenario, on average your shopping bill goes up by 10% because we have a 25% depreciation".

The governor of the Bank of England made comments about Lord King of Lothbury, who ran the Bank from 2003 to 2013, at a parliamentary hearing where he defended his Brexit projections.

"For individual food products it's going to vary", he told Parliament's Treasury committee on Tuesday.

But he said the price of food could go up by 10% if Britain left the European Union with no deal and with no mitigating arrangements to avoid chaos at the country's ports.

He said: "There's no exam crisis".

Carney's grilling by the cross-party group comes a week after the Bank of England published a stark post-Brexit economic forecast, warning that GDP would fall by as much as 8% in the case of a disorderly no-deal exit from the EU.


But the analysis prompted a vicious backlash, with pro-Brexit Conservative MP Jacob-Rees Mogg describing Mr Carney as a "second-tier Canadian politician" and claiming he had damaged the Bank's reputation with his repeated Brexit warnings.

Meanwhile, the bank's former governor Lord King today called the predictions "dubious" and "questionable".

"Tail risk is tail risk", he said, adding that it was "low probabilty that all these risks would happen at the same time".

Mr Carney was asked about whether rising meat prices might make people become vegan. "We didn't stay up all night - you asked for something that we had and we brought it and gave it to you".

"We would not be comfortable...outsourcing supervision of this incredibly complex, incredibly important financial sector", he said.

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