POLITICS

Mark Carney Condemned By Jacob Rees-Mogg For 'Brexit' 'Propaganda'

Bank of England governor clashes with Tory MP over becoming 'politically involved' in referendum

24/05/2016 15:14 | Updated 24 May 2016

Bank of England governor Mark Carney has faced accusations of coming under "undue influence" from George Osborne to champion the same "propaganda" on 'Brexit'.

Appearing before the Treasury select committee, Carney faced a hushed yet tetchy exchange with Tory MP Jacob Rees-Mogg over claims he has sacrificed his independence to support the Government's campaign to keep Britain in the EU on the June 23 referendum.

The governor has made warnings of turmoil caused by 'Brexit', fearing it poses the "most significant risk" to the British economy and suggesting a recession could follow.

But a suspicious Rees-Mogg, a noted Eurosceptic, raised concerns over meetings between the Chancellor and Carney where the discussed the vote, and whether there were records of their conversations. 

Rees-Mogg, who accused the governor of becoming "politically involved", argued that the Bank of England would not forecast the impact of a general election on the economy - and that getting involved in the EU referendum campaign "fundamentally undermines the standing of the Bank of England and it's appearance of independence".

But Carney was firm in his rebuttal: "It is political to ignore it."

It is the second time the pair have clashed at a select committee hearing, with Rees-Mogg previously accusing the governor of indulging in “speculative” statements backing the “In” campaign that were “beneath the dignity of the Bank of England”.

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