Carney Accused Of Brexit Debate Propaganda

Bank of England governor Mark Carney came under fire at a grilling by MPs today when he was accused of rehashing "propaganda" on the economic consequences of Brexit.

Mr Carney was involved in a testy exchange with Conservative pro-leave MP Jacob Rees-Mogg as he suggested that the Bank's reputation for independence had been damaged allowing it to be seen as a "creature of the Government".

The hearing of the Commons Treasury Select Committee came after the governor last week raised the possibility of the UK falling into recession should the country vote to leave the European Union.

Those remarks came as the Bank's quarterly inflation report warned that the economy could see lower growth, higher inflation and rising unemployment if voters choose an exit.

Mr Carney told MPs that all nine members of the Bank's Monetary Policy Committee agreed on the likely scenario in the event of a Brexit and insisted that there was "no possibility of undue influence coming from the Treasury".

But Mr Rees-Mogg - an arch-critic of the governor who has previously called for him to be fired - probed Mr Carney over his contacts with George Osborne and what records there had been of their discussions.

He said: "It (Other OTC: ITGL - news) 's very convenient that you are putting out the same propaganda as the Chancellor."

The governor said: "I don't accept that at all." He also denied a suggestion by Mr Rees-Mogg that he had agreed to meet MPs to discuss the forthcoming vote.

Mr Carney defended the Bank's intervention in the public debate, saying: "They expect us to come straight to the big issues and they expect us to take action.

"We are apolitical. We have not supported a side in the campaign. The only side we have supported is the target of low, stable and predictable inflation which is our remit."

But Mr Rees-Mogg insisted: "I think you have become politically involved in a way you have quite clearly said you would not in an election."