As the UK is preparing to hold its historic vote on the EU membership, the head of the Bank of England says Britain’s potential exit from the EU is the single biggest domestic risk to the nation’s economy.
In a heated exchanges with the British lawmakers, Governor Mark Carney sought to dodge every effort to pin him to a position that either the “in” or “out” campaigners might use ahead of a June 23 referendum.
“The issue is the biggest domestic risk to financial stability because, in part, of the issues around uncertainty,” he said.
He stressed that the debate over continued EU membership also has the potential to “amplify risks” surrounding trade and investment, housing and financial markets.
However, he said international risks, such as recent volatility in China, were a greater problem for Britain’s domestic economy, the AFP reported.
He also said he was aware that some financial firms were making contingency plans to relocate should Britain vote to…