Called it ‘a lot of money’
Speaking to the Treasury Committee today, Bank of England Governor Mark Carney has claimed that the Brexit vote has left real household incomes about £900 lower, which he called “a lot of money”.
“If you map that into household incomes… Real household incomes are about £900 lower than we forecast in May 2016, which is a lot of money,” he added.
The central bank chief also explained how the UK economy is currently 1 per cent smaller than expected two years ago.
The slowdown in the economy in the first three months of 2018, Carney said, could be attributed to heavy snow and icy conditions which knocked 0.1 or 0.2 per cent of growth from the economy. “Our view is not that circumstances changed in the first quarter. It’s more likely to have been temporary and idiosyncratic factors that slowed the economy,” he added.
Carney also warned that the UK urgently needed the single market and customs union transition after March 2019. He left the central bank’s estimate for growth in the second quarter of 2018 unchanged at 0.4 per cent.