BRITAIN’S economy will motor ahead if we leave Europe with a deal, the Governor of the Bank of England has admitted.
Mark Carney said there will be a “fairly marked acceleration in UK growth” with growth forecast to more than double under Boris’ plan to get a better agreement from Brussels.
But he warned there was still a risk of a No-Deal Brexit that would deliver an instant shock to the country, with petrol and food prices rising and businesses going to the wall as the pound crashed.
The outgoing Governor was accused by senior Tories of reviving ‘Project Fear‘ after claiming there was a one in three chance of a recession after the UK leaves the EU.
Speaking to the BBC yesterday, however, he claimed the Bank’s quarterly inflation report in fact predicted a big boost if there is a deal.
Canadian Mr Carney said: “The report has in a Brexit scenario – the Government’s policy of moving to some form of deal with the European Union – actually a fairly marked acceleration in UK growth.
“It starts a little later than we previously expected because uncertainty has been weighing on investment but growth rates pick up from 1 per cent on a per annum basis that they are now, at least in our forecast, to well above 2 per cent.
“So the economy really does pick up in that forecast.”
He said a deal was still more likely than not, but there is still a “significant possibility” of No-Deal, and so it is “not helpful” to downplay what it would mean.
There are some “very big industries” that would no longer be profitable, such as car manufacturing, and the “instantaneous” shock would see prices go up in shops as the value of sterling would fall.
