This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at https://www.theguardian.com/politics/2016/may/15/brexit-minister-bank-of-england-dangerous-intervention-andrea-leadsom-financial-markets-eu

The article has changed 7 times. There is an RSS feed of changes available.

Version 0 Version 1
Brexit minister accuses Bank of England of 'dangerous intervention' Brexit minister accuses Bank of England of 'dangerous intervention'
(35 minutes later)
The Bank of England’s warning that leaving the EU could lead to a recession is an “incredibly dangerous intervention” that has increased financial instability, a Tory minister campaigning for Brexit has said.The Bank of England’s warning that leaving the EU could lead to a recession is an “incredibly dangerous intervention” that has increased financial instability, a Tory minister campaigning for Brexit has said.
Andrea Leadsom, a Conservative energy minister, accused the Bank’s governor, Mark Carney, of disrupting the markets and jeopardising his independence, after he argued last week that leaving the EU could lead to a financial downturn in the short term.Andrea Leadsom, a Conservative energy minister, accused the Bank’s governor, Mark Carney, of disrupting the markets and jeopardising his independence, after he argued last week that leaving the EU could lead to a financial downturn in the short term.
On Friday, Carney said Brexit could send the pound sharply lower, stoke inflation and raise unemployment, leaving the Bank with a difficult balancing act on interest rates.On Friday, Carney said Brexit could send the pound sharply lower, stoke inflation and raise unemployment, leaving the Bank with a difficult balancing act on interest rates.
Related: Brexit could lead to recession, says Bank of EnglandRelated: Brexit could lead to recession, says Bank of England
His comments infuriated leave campaigners, who responded by accusing the Bank of having a chequered record on forecasting.His comments infuriated leave campaigners, who responded by accusing the Bank of having a chequered record on forecasting.
But Leadsom went further on the BBC1’s Andrew Marr Show on Sunday, claiming Carney had destabilised financial markets just weeks before the June referendum and had increased the chance of self-fulfilling prophecy.But Leadsom went further on the BBC1’s Andrew Marr Show on Sunday, claiming Carney had destabilised financial markets just weeks before the June referendum and had increased the chance of self-fulfilling prophecy.
She said that “to get involved in what might happen, that’s just not in their remit”, adding: “They are not there to promote financial instability but that is what they’ve done.She said that “to get involved in what might happen, that’s just not in their remit”, adding: “They are not there to promote financial instability but that is what they’ve done.
“It is institutional ganging up on the poor British voter who is trying to get a decent primary school place and doctors’ appointment.”“It is institutional ganging up on the poor British voter who is trying to get a decent primary school place and doctors’ appointment.”
Thew Bank of England governor had “come out with some nonsense that is totally unjustifiable, totally speculative stuff” and predicted that he would be wishing that he had not done it, she said. The Bank of England governor had “come out with some nonsense that is totally unjustifiable, totally speculative stuff” and predicted that he would be wishing that he had not done it, she said.
However, Carney strongly defended his intervention on the same programme, saying it was a lesson of the last financial crisis that an independent institution should have responsibility for stability. Carney strongly defended his intervention on the same programme, saying it was a lesson of the last financial crisis that an independent institution should have responsibility for stability.
He said another lesson was “not to cross your fingers and hope that risk would go away” and that his job was to be “straight with people”.He said another lesson was “not to cross your fingers and hope that risk would go away” and that his job was to be “straight with people”.
It was “absolutely not” overstepping the mark to warn of possible storm clouds ahead, he said.It was “absolutely not” overstepping the mark to warn of possible storm clouds ahead, he said.
Carney said it was a short term forecast, and declined to be drawn about the longer term financial modelling about the consequences of Brexit. Carney said it was a short-term forecast, and declined to be drawn about the longer term financial modelling about the consequences of Brexit.
Jacob Rees-Mogg, a backbench Tory MP, said Carney “should he fired”, saying the Bank of England governor had become highly politicised in what was meant to be an impartial role.Jacob Rees-Mogg, a backbench Tory MP, said Carney “should he fired”, saying the Bank of England governor had become highly politicised in what was meant to be an impartial role.