Bank of England warns that vote to leave EU risks a credit crunch
Financial policy committee also warns of possible run on sterling and higher interest rates for mortgages in boost for remain side
The Bank said the EU referendum campaign posed the ‘most significant near term’ domestic threat to financial stability. Photograph: Gareth Fuller/PA
The Bank of England has given David Cameron a significant boost ahead of the EU referendum by warning that a vote to leave risks causing a run on sterling, a credit crunch and higher interest rates for mortgage payers and businesses.
Threadneedle Street said the closely fought campaign posed the “most significant near term” domestic risk to financial stability, after one of its key policy committees weighed up the consequences of Britain ending its 43-year relationship with the EU.
Although neither Downing Street nor the Treasury responded to the statement from the Bank’s financial policy committee (FPC), the prime minister and the chancellor, George Osborne, will find its assessment useful as they attempt to make the case for a remain vote on 23 June.
Full story in The Guardian here.
