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Minutes from the latest meeting of the Bank’s Monetary Policy Committee also state that the looming referendum is already having a dampening effect on the economy, noting that many major capital spending decisions and property transactions were being delayed, pending the outcome of the vote.
Its warning, which was roundly criticised by the Leave campaign, came as the former Labour Chancellor Alistair Darling, who presided over the UK’s response to the 2008 global financial crisis, said that “dark clouds” were again “gathering on our horizon” and slammed Brexit campaigners for “turning a blind eye to credible warnings of economic disaster”.
In its minutes, the Bank of England said that a vote to leave the EU would “result in an extended period of uncertainty about the economic outlook including about the prospects for export growth”.
“This uncertainty would be likely to push down on demand in the short run…(and) have significant implications for asset prices, in particular the exchange rate.” [...]
However, in his speech on the EU, Mr Darling, who chaired the Better Together campaign during the Scottish Referendum, condemned the Brexit camp for failing to explain what form a new deal with the EU would take, branding their campaign “Project Fantasy”.
“They can’t guarantee trade without tariffs, which would push prices up. They can’t guarantee investors won’t leave Britain, risking jobs. They can’t guarantee our service sector will have free access to Europe, hitting growth…They are offering a fantasy future where we keep all the benefits of being in Europe without being part of the single market,” he said. [...]
Full article on The Independent