Mark Carney SHOCKS Remainers with praise for Brexit – ‘a bad deal is least likely outcome’
THE Governor of the Bank of England has downplayed fears of a ‘bad Brexit deal’ and revealed Brexit benefits include new opportunities and a renewed relationship with the rest of the world.
Brexiteers like Nigel Farage have long complained that the Bank of England chief has tried to spread Brexit scaremongering during his tenure in the capital.
However, during an interview with Peston on Sunday, the banker revealed the opportunities that Brexit would bring, and also downplayed fears of a ‘bad deal’ with the EU.
He said that a bad Brexit deal was by far the least likely outcome of the ongoing EU negotiations.
Mr Carney told Peston: “The UK is unique – the renegotiation in the relationship with the EU will, of course, create new opportunities with the rest of the world.”
However, he did admit that the uncertainty surrounding Brexit – given the ongoing stalemate in the talks – had hit UK growth.
The governor said that Britain “should be booming, but instead it is only growing” – blaming the lack of clarity on the future relationship with the EU.
He added: “Since the referendum, business investment has picked up, yes, but not to the extent we would have expected, given the widespread growth in the world.”
But, Mr Carney also said that the uncertainty was nothing new, and was only reinforcing the slowdown following the 2008 financial crash.
He also gave a boost to those who support close access to the single market in the post-Brexit world.
Mr Carney said the less access to the market will weigh on the economy over time, while the UK “re-orients its economy”.
To Brexiteers who are pushing for a no deal scenario, the Bank of England chief warned that this would see the growth rate plummet.
However many criticised Carney’s appearance on Peston. He was branded “an agent of Project Fear” after the Sunday television interview.
The controversial Canadian, appointed by former Chancellor George Osborne, was brought in by the Remain campaign in the referendum along with the CBI and international organisations to boost claims that a Brexit vote would lead to an economic disaster.
But despite his predictions failing to materialise Mr Carney has provoked anger by continuing to attack Brexit and claim it will damage the British economy.
On the Peston on Sunday show, Mr Carney claimed that Brexit has caused wages to be 20 per cent lower than they would have been if there had been a Remain vote.
He also claimed that a “no deal” would slow the British economy and possibly mean the Bank of England could not intervene to save it.
The governor then said that Brexit had stopped the economy from “booming”.
“Since the referendum, what we have seen is that business investment has picked up, but it hasn’t picked up to the extent one would have expected given how strong the world is, how easy financial conditions are, how high profitability is and how little capacity they have,” he said.
“It should really be booming, and it’s just growing,” he added.
But his dismal outlook was branded “Project Fear 2” by senior Remainers.
Former director of the British Chambers of Commerce John Longworth, co-chair of Leave Means Leave said: “Mark Carney has been consistently negative about Brexit since even before the British people voted to leave the EU.
“He is acting as an agent of Project Fear and seems completely oblivious to the economic benefits of Brexit. He is negatively impacting the B of E and the British economy.
“He needs to accept the referendum result and look to the huge opportunities Brexit can bring.”
Meanwhile Senior Tory backbencher Andrew Rosindell said: “How many predictions have we had from the Bank of england which have been completely wrong? Too many.”
“I believe in Britain and Brexit is going to be a great success.”
November 6th, 2017: Express