Advertisement
UK markets closed
  • NIKKEI 225

    40,168.07
    -594.66 (-1.46%)
     
  • HANG SENG

    16,541.42
    +148.58 (+0.91%)
     
  • CRUDE OIL

    83.11
    -0.06 (-0.07%)
     
  • GOLD FUTURES

    2,254.80
    +16.40 (+0.73%)
     
  • DOW

    39,807.37
    +47.29 (+0.12%)
     
  • Bitcoin GBP

    56,103.52
    +1,188.95 (+2.17%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • NASDAQ Composite

    16,379.46
    -20.06 (-0.12%)
     
  • UK FTSE All Share

    4,338.05
    +12.12 (+0.28%)
     

Bank Of England Governor In EU Letters Scrap

The Bank of England Governor Mark Carney has become embroiled in a battle of letters with a leading Brexit campaigner.

Tory MP Bernard Jenkin wrote to Mr Carney warning him not to make "any public comment" in the run-up to the referendum because it would be against the rules.

In response, Mr Carney replied with a robust three-page letter telling him he has played by the rules and accusing Mr Jenkin of a "fundamental misunderstanding" about the Bank of England's independence.

The row came to light hours before the Bank's latest monetary policy committee (MPC (KOSDAQ: 050540.KQ - news) ) meeting concluded - with a warning that a Brexit vote could lead to further plunges in the value of the pound .

ADVERTISEMENT

Mr Carney's own warnings about the negative impact of Brexit on the economy have been roundly criticised by Leave campaigners for going too far.

:: PM Accused Of 'Ludicrous' EU Scaremongering

As chairman of the Public Administration and Constitutional Affairs Select Committee, Mr Jenkin has been relentless in ensuring Government departments and public bodies abide by the rules of "purdah", which prevent public bodies commenting on the referendum debate in the run-up to the vote.

He has accused Mr Carney of being "very aggressive" in his response.

In his letter he wrote: "I very much hope that you will avoid doing anything which could suggest you or the Bank have disregarded Parliament’s wishes. By defeating the government in a vote in the Commons, the importance of this matter could not have been made any clearer."

:: EU Questions For Corbyn On Sky News?

Mr Carney wrote back correcting Mr Jenkin on a number of issues raised, finishing by telling him: "In the future, I would be grateful if you would do me and my fellow independent committee members the courtesy of consulting the public record before writing letters such as that which I received on Monday."

Speaking on Radio 4's Today programme Mr Jenkin said Mr Carney had gone "way beyond what a bank governor would normally do in terms of making statements about rate setting and economic forecasts" .

He said: "He's reacted very, very aggressive towards me."

Former chancellor Alistair Darling said: "This is a blatant attempt to muzzle a respected independent voice. The Bank of England is independent, the Governor is independent and he has a duty to say what he thinks.

"It (Other OTC: ITGL - news) is very clear the Leave campaign doesn't want people to hear what the Bank has to say on the most critical issue facing our generation because they don't like its conclusions."

It comes after senior Tories Lord Howard, Lord Lamont, Lord Lawson and Iain Duncan Smith wrote a letter to The Daily Telegraph accusing the Bank of England of "startling dishonesty in the economic debate".

They claimed the Bank had been "peddling phoney forecasts" to back up David Cameron and George Osborne’s attempt to scare people into voting Remain.

Mr Cameron tweeted in response: "It's deeply concerning that the Leave campaign is criticising the independent Bank of England."