Carney pushed to prove Bank of England's independence over Brexit

Carney pushed to prove Bank of England's independence over Brexit

Carney pushed to prove Bank of England's independence over Brexit

Bank Governor Mark Carney pointed to likely rate cuts in his speech immediately following the Brexit vote, but many had expected the Bank to hold fire until next month.

In a tense exchange, Conservative MP Andrew Tyrie asked Carney for a response to the "extraordinary allegation" by senior politicians that the Bank of England had been "peddling phony forecasts" to scare the United Kingdom public out of voting to leave the European Union.

Some believe the MPC may cut rates to a level even lower than that, with Bank of America Merrill Lynch expecting policymakers to slash rates to as low as 0.1%.

Treasury Select Committee chairman Andrew Tyrie has questioned the future of the Bank of England's independence post-Brexit. Inflation is forecast to remain at 0.1 percent in June.

THE Bank of England is forecast to cut interest rates as early as this week to ease the strain on the economy in the wake of the referendum.

His scepticism comes after two former chancellors signed an open letter which slammed the central bank over its involvement in the EU Referendum debate. The nine-member monetary policy committee will announce its decision on Thursday at midday and experts say it has a range of options - including doing nothing for now.

Carney adds it is important for bank governors and Chancellors to be able to have private conversations. I was satisfied the models were created by independent economic assumptions'.

It was in March 2009 the Bank of England interest rate was cut last time when the United Kingdom was in recession after the global banking crisis.

Carney was clear that a reduction in the buffer increases the likelihood more money will be borrowed.

Carney was also careful to move away from language used to describe the 2007/08 financial crisis when Reeves asked if it was possible a "crunch" might still occur. Their balance sheets are in strong positions. The FPC was briefed by the Financial Conduct Authority on "the extent of outflows from these funds, and on the possibility that funds could suspend redemptions in the near term".

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