Response to Mark Carney’s evidence to the Treasury Select Committee

Responding to Bank of England governor Mark Carney’s evidence to the Treasury Select Committee today, Professor Patrick Minford, Chair of the Economists for Free Trade said:

“Carney’s and the Bank’s forecasts for 2017 were far too pessimistic – the Brexit decision has not reduced growth.

“Britain is currently at full employment and wages are accelerating. We could hardly have had fuller employment without the Brexit decision; also Brexit cannot have yet affected productivity as it has not yet come into force. So GDP has not been affected so far. What has happened is a sharp devaluation which has caused a welcome shift from consumption to net exports and traded sector profits.This has changed the structure of the economy and improved the large balance of payments deficit.

“It is a relief that Mark Carney is retiring, as he seems incapable of understanding the Brexit process. Hopefully the next governor will understand it and stop playing politics.”


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