Carney reaffirms that Brexit model was not ‘exam crisis’

Written by Oliver Wade
05/12/2018

Bank of England (BoE) governor Mark Carney yesterday reassured his critics in front of an audience of MPs that his recent Armageddon scenario was not an “exam crisis”.

The Threadneedle Street boss said that criticism of the BoE’s decision to create a report based on the worst-case scenario, which warned that the pound could fall by a quarter in the event of a “disorderly Brexit”, was “entirely unfair”.

Carney told MPs “there’s no exam crisis”.

“We didn’t just stay up all night and write a letter to the Treasury Committee. You asked for something that we had, and we brought it and we gave it to you.”

When presenting his evidence to the Treasury Committee, Carney insisted that the scenario “is not the most likely thing to happen”.

He added that it was “low probability” that all of these risks would occur at the same time.

The BoE governor reiterated that: “If people take one thing away from the core of this analysis, and the follow on consequence analysis, the core of the financial system is resilient and ready for Brexit whatever form it takes… then that is what we want.”

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