Portrait of Mark Carney
Politician · event
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Mark Carney on Brexit

Vocal opponent of EU exit (strong)

TL;DR

Mark Carney consistently warned about the negative economic consequences of the UK leaving the European Union before the 2016 vote.

Key Points

  • He warned prior to the June 2016 referendum that leaving the European Union could lead to a recession.

  • Following the vote, he announced the Bank of England would take additional measures to ensure the financial system operated normally.

  • He agreed to extend his term as Governor of the Bank of England to support a smooth exit process from the EU.

Summary

Mark Carney, during his tenure as Governor of the Bank of England, held a strong, vocal position opposing Brexit, consistently warning of the potential negative economic fallout. He stated in advance of the 2016 referendum that leaving the EU could trigger a recession, a weaker pound, and higher inflation. Following the vote, he took steps to calm financial markets and agreed to extend his term specifically to manage the transition period, as he believed the British financial system was unprepared for a disorderly departure.

His warnings were often met with resistance from pro-Brexit figures who accused him of political bias and overstepping his mandate. Despite the criticism, he maintained that speaking out on the likely economic realities was his duty to the country. In later years, he asserted that the negative predictions made by the Bank of England regarding Brexit's impact on inflation and growth had, unfortunately, proven to be the case.

Key Quotes

“Brexit is the first test of a new global order and could prove the acid test of whether a way can be found to broaden the benefits of openness while enhancing democratic accountability”.

Frequently Asked Questions

Mark Carney was strongly against Brexit, warning repeatedly before the 2016 referendum that leaving the EU would negatively impact the UK economy through lower growth and higher inflation. As Governor of the Bank of England, he felt a duty to clearly state these potential economic risks to the public.

While Mark Carney actively campaigned against Brexit by publicly detailing the potential economic damage, he did not have the political authority to stop the referendum result. He focused his efforts on managing the financial fallout after the vote, assuring markets the system would remain stable.

Mark Carney's core stance, which was opposition to leaving the EU based on economic forecasts, did not change. He later maintained that the negative economic consequences he predicted, such as rising inflation, had materialized.