RE: Teccc16 Jun 2023 22:46
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Brexit is to blame for inflation, claims Mark Carney
Former Bank of England governor says the biggest shocks in decades could take years to unwind
By
Szu Ping Chan
and
Tim Wallace
16 June 2023 • 9:14pm
Mark Carney
Mark Carney has blamed stubbornly high inflation in Britain on Brexit, claiming he had warned the public that leaving the European Union would damage the economy.
The former governor of the Bank of England said that he had been vindicated after predicting Brexit would lead to higher prices, a weaker pound and slower growth.
Branded the “architect of Project Fear”, Mr Carney repeatedly claimed that the economic consequences of Brexit were all negative. He claimed unemployment would rise under anything except a “close” relationship with Brussels after Brexit.
In an interview with The Telegraph he said: “There’s no joy in saying: well, ‘we told you so’ because people are having to live with that reality.”
In 2018, Mr Carney published a report alongside his colleague with doom-laden predictions, including a no-deal scenario that triggered up to a 30pc drop in house prices and a recession more damaging than the financial crisis.
Mr Carney, who led the Bank for seven years until 2020, said a series of “negative supply shocks” had disrupted the economy and led to an unexpected increase in costs.
He said the single biggest energy shock since the 1970s, combined with a shrinking workforce and the impact of Brexit had triggered a “unique” adjustment in the UK that he suggested could take years to unwind.