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.”