Bank of England’s Carney speaks in parliament on Brexit

LONDON (Reuters) – Bank of England Governor Mark Carney and other top officials from the central bank were speaking about a BoE report on the potential economic impact of Brexit in Britain’s parliament on Tuesday.

Below is a selection of their comments to the Treasury Committee.

DEPUTY GOVERNOR BEN BROADBENT ON BREXIT MOVING STERLING

“The fall (in sterling) since the referendum represents the market’s view on a range of possible outcomes. And essentially the larger the effect on UK trade, the UK exit, the further the sterling is likely to fall, for various reasons. So at the moment what is ‘priced in’ to the level of the exchange rate is a number of possible outcomes.

“So if the eventual exit is towards the better end of that range, you would expect sterling to rise from here, if it’s towards the worse end of that range, you would expect it to fall further. And generally, the greater the economic dislocation, the worse the exchange rate is going to be, there’s a direct relationship.”

GOVERNOR MARK CARNEY ON BREXIT AND UK FINANCIAL SECTOR

“We would be uncomfortable not having some flexibility to ensure that it (the UK’s financial sector) is appropriately regulated and appropriately supervised. We would not be comfortable…outsourcing supervision of this incredibly complex, incredibly important financial sector.”

CARNEY ON CRITICISM OF BOE BREXIT SCENARIOS

“There’s no exam crisis. We didn’t just stay up all night and write a letter to the Treasury Committee. You asked for something that we had, and we brought it, and we gave it to you.”

DEPUTY GOVERNOR JON CUNLIFFE ON EEA MODEL

“I think our financial sector is about 20 times bigger than Norway’s. It’s much more connected internationally, it’s much more complex.

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