Yahoo Finance IMF: UK Economy Could Suffer From Brexit
The IMF will today hit out at Britain's possible exit from the European Union in a report of its annual assessment of the UK economy.
The report will be presented by Managing Director Christine Lagarde at the Treasury this morning alongside Chancellor George Osborne.
It (Other OTC: ITGL - news) comes hours after the Bank of England surprised many by firmly indicating it has concerns about the economic consequences of a vote to leave the EU.
Leave campaigners hit back against the Bank's Governor Mark Carney, including Tory MP Jacob Rees-Mogg and member of the Treasury Select Committee, who called for Governor Carney to be fired.
:: Bank Raises Recession Fears In Brexit Warning
Mr Rees-Mogg told Sky News: "Mark Carney has intervened speculatively in a political matter.
"It's the responsibility of the Monetary Policy Committee to be independent and he's decided to make a deeply political choice in a referendum which is the concern of the British people and therefore he should be fired."
After a day in which the official Vote Leave campaign had threatened "consequences" for broadcaster ITV (LSE: ITV.L - news) for inviting UKIP leader Nigel Farage to a TV discussion, one Government source told Sky News: "The Leave campaign has been reduced to frankly unhinged demands for the Governor to be sacked and ITV to be closed down".
Governor Carney warned that growth could be materially lower, and prices and unemployment higher if Britain votes to leave.
The Bank's Inflation Report warned of a "perhaps sharp" slide in sterling after a Leave vote and funding problems in government and corporate bond markets, and for bank funding.
:: How Age And Income May Show You Back 'Brexit'
The Bank also calculated that the referendum was already impacting on growth, downgrading Q2 growth to 0.3%, its lowest rate since 2012.
The report, the combined calculation of nine members of the Monetary Policy Committee, including four independent economists, estimated that one half of the 9% fall in the pound since November was attributable to the Brexit referendum.
Speaking to Sky News the Governor justified his intervention, saying that to "suppress" the Bank's calculation would have been the real form of political interference.
Ex-Chancellor and Leave campaigner Lord Lamont argued the Governor should merely have communicated the Bank stood ready to deal with any consequences and that Governor Carney could now be blamed for any "pause" in the economy if Britain votes to leave.
:: EU In Or Out? Put Your Questions To PM Or Gove
Polls have shown Governor Carney is highly influential with voters of every age, demographic and from every region.
ComRes found he was more influential on British voters than the Queen, French President Francois Hollande, German Chancellor Angela Merkel, and US President Barack Obama.
The Treasury is expected to release its own assessment of the short-term economic impact of a Leave vote in the coming days (Other OTC: UBGXF - news) .
