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Carney says BoE may have to break purdah period on EU referendum

Bank of England Governor Mark Carney said on Tuesday that the U.K.’s central bank does plan on following the purdah period in the run-up to the June 23 referendum on the Britain’s membership in the European Union, but noted that Brexit risks could form a part of the Monetary Policy Committee decision scheduled for June 16 and thus could form part of the minutes. Testifying before the U.K.’s Treasury Select Committee Hearing on the May Inflation Report, Carney admitted that the June 16 decision could force the BoE to break the so-called purdah period that prohibits British civil servants from commenting on the upcoming referendum and will begin from Friday.
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Carney says he had not overstepped the mark with Brexit warnings

Bank of England Governor Mark Carney denied on Sunday that he had compromised the central bank's independence by warning of the short-run costs of leaving the European Union, after criticism from "Out" campaigners. Last week the BoE said Britain risked slower growth, higher inflation and even recession if voters backed leaving the EU in a referendum on June 23, prompting criticism that the BoE was biased and itself destabilising markets.
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BoE left interest rates at record low

The Bank of England cut its growth forecasts and issued its strongest warning yet that a vote to leave the European Union would hurt the economy. With just six weeks to go until Britain’s referendum, the nine-member Monetary Policy Committee, led by Governor Mark Carney, said there were more signs it was weighing on growth and clouding the outlook. Officials unanimously agreed to maintain their benchmark rate at a record-low 0.5 percent, saying inflation remains subdued.
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Sterling stable in European part of the Friday's session

There are no data releases from the UK with Sterling being stable around 1.45 handle in a quite European part of the session. With Britain’s European Union referendum looming, the Bank of England governor will present economic projections to guide investors on an outlook that has rarely been more clouded in doubt. He also has to balance how far to stray into the fraught political battle against the prospect of criticism for saying too little. “I can’t imagine the BOE would want to give the markets any kind of hostage to fortune,” said Peter Dixon, an economist at Commerzbank AG in London.  Read more...

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