You wanted it, you got it: Carney defends BoE Brexit report

You wanted it, you got it: Carney defends BoE Brexit report

"We didn't just stay up all night and write a letter to the Treasury Committee", Carney said, adding: "You asked for something that we had, and we brought it, and we gave it to you".

But he told lawmakers that the price of food could go up by 10% if Britain left the European Union with no deal and no mitigating arrangements to avoid chaos at the country's ports.

Mr Carney said they had put a lot of work into the assessments: "There's no exam crisis".

Mr Carney's comments follow the Bank's stark warning last week on the havoc a no-deal Brexit could wreak, with the worst-case scenario sending Britain into a recession worse than the financial crisis.

Mark Carney told MPs on Tuesday that in "the most extreme scenario", Brits could expect the cost of their shopping baskets to soar after the United Kingdom leaves the EU.

Even in the case of a more orderly Brexit, with a planned transition period, the cost of food would still spike by around 6%, Carney said.

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Former BoE Governor Mervyn King on Tuesday lamented the central bank's involvement in what he said was an attempt to frighten the country about Brexit.

On auto prices, he added: "The direction of travel is clear, but the size (of price rises) will depend on the nature of the withdrawal".

The Threadneedle street boss said that criticism of the Bank's decision to make a report on a worst-case scenario - which warned that the pound could fall by a quarter in the event of a "disorderly Brexit" - was "entirely unfair". He branded Carney "a second-tier Canadian politician" who had politicised the Bank of England.

"There's no exam crisis". He also dubbed the criticism of the Governor by Brexiteer Jacob Rees-Mogg as being "contemptuous of Parliament".

Continuing his defence of the Bank's doomsday scenario relating to interest rates - which are modelled to increase by 5.5% in an extreme hard Brexit - Mr Carney said: "The market has never experienced something like this".

However, despite banks, economists and business leaders issuing countless warnings, Carney said the central bank's stress tests found Britain's financial sector to be resilient and capable of handling Brexit-induced economic shocks.

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