Banking chief says Brexit has already cost each household £900

PUBLISHED: 13:59 22 May 2018 | UPDATED: 13:59 22 May 2018

Bank of England governor Mark Carney

Bank of England governor Mark Carney

PA Wire/PA Images

The governor of the Bank of England has revealed the decision to quit the European Union is already hitting hard-working families in the pocket.

Become a Supporter

Almost four years after its creation The New European goes from strength to strength across print and online, offering a pro-European perspective on Brexit and reporting on the political response to the coronavirus outbreak, climate change and international politics. But we can only continue to grow with your support.

Speaking before the Commons Treasury Committee Mark Carney told MPs economic growth was between 1.5% and 2% lower than predicted on the eve of the referendum.

He said: “That’s a reasonable difference. If you map it into household incomes, real household incomes are about £900 per household lower than we forecast in May 2016, which is a lot of money.

“The question is why and what drove that difference. Some of it, and we can’t be absolute about it, but some of it is arguably ascribed to Brexit.”

He added that business investment was still being held back and said there was only a chance of a “pick-up” in investment when the Brexit agreement is finalised.

“It’s understandable why businesses are holding back – there’s some big decisions that are about to be made - why wouldn’t they want to wait until the path becomes clearer?” he said.

Become a Supporter

Almost four years after its creation The New European goes from strength to strength across print and online, offering a pro-European perspective on Brexit and reporting on the political response to the coronavirus outbreak, climate change and international politics. But we can only rebalance the right wing extremes of much of the UK national press with your support. If you value what we are doing, you can help us by making a contribution to the cost of our journalism.

Become a supporter

You've seen the news, now discover the story

The New European is committed to providing in-depth analysis of the Brexit process, its implications and progress as well as celebrating European life.

Try 13 weeks for £20

Latest Articles

Most Read

latest issue

ANTI-BREXIT EVENTS

Find your nearest pro-European campaigning activities, talks, protests and events nationwide.