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The Silver Lining to Brexit from Mark Carney

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The outgoing Bank of England (BOE) Governor Mark Carney warned over the economic risks of the UK leaving the European Union (EU), in an exclusive interview with Reuters.

However, he said that there could be a silver lining in PM Boris Johnson’s plans to boost growth.

“Britain was moving to address its main economic problem – weak productivity.

“In an environment where everything is getting a fresh look, it’s fertile ground for taking a step back and making bigger changes than otherwise might have been made.

“It’s early days but there are several initiatives – the budget will be telling – that suggest that some of these opportunities are being grasped.

“It’s absolutely clear in the data, whether both the survey data and the hard data, that it’s had an impact, a notable impact on investment and of course that flows through to productivity.

“Brexit could prove to be a conceptual positive for Britain as it finds its feet outside the EU.

“It is a major reordering of our relationship not just with the European Union but our trading relationships with the rest of the world and it is prompting a reassessment of economic policy, structural economic policy in the country.

“We are already seeing a rebound in confidence, business confidence and to some extent a firming of consumer confidence.

“We are watching it closely, as are other central banks and fiscal authorities, and if it necessitates some form of action, whether it’s on the macro-prudential side or the policy side, we will take it.”