Households are £900 worse off since the Brexit vote, Bank of England governor Mark Carney has claimed.
Despite global and European economies being much, much stronger than they were when the Bank made its economic predictions ahead of the 2016 referendum, and a very large stimulus provided by the Bank of England, the UK’s economy is up to two per cent lower than it would have been, he said this morning, adding: That is a reasonable difference.
If you map that into household incomes… Real household incomes are about £900 lower than we forecast in May 2016, which is a lot of money, he added.
Carney said investment spending was three or four percentage points lower than expectations but struck a note of optimism, saying the Bank now expected that to increase, which was key to our forecasts. But it would not be a sharp increase, he added.
Over the last year and half there has been an impact, relative to what we would have expected, Carney said.
It’s understandable why businesses are holding back there are big decisions about to be made, why wouldn’t they wait a little while longer until path is clear?