Bank Warns Brexit Could Damage UK Growth
The Bank of England has issued an unprecedented warning that the UK economy could endure “materially lower growth.. notably higher inflation” and “rises in unemployment” if Britain votes to leave the European Union next month.
The report warns of sterling falling, "perhaps sharply" – code for falls of 20% - if there is a Leave vote.
It blamed half of the existing 9% fall in the value of the pound since November on a referendum effect.
The report also indicated that the referendum itself was already hitting growth – the forecast for the current quarter slashed from 0.5% to 0.3%, the lowest growth since the 2012 Eurozone crisis.
The Bank has never before detailed the risks of a political event in this way, and this is its most extraordinary intervention in a political e...
