If the governor of the Bank of England is worried about Brexit, then we should be. Today Mark Carney warns of Brexit risk to financial stability. In the event of a vote for Brexit, Mr Carney said the Bank "will do everything in our power to discharge our responsibility to achieve monetary stability and financial stability". But he added that he could not "provide a blanket assurance that there would not be issues in the short term with respect to financial stability and that potential reduction in financial stability could be associated - and normally would be associated - with poor economic outcomes, as we have seen in the past". The scale of the impact of Brexit on the financial sector would depend largely on the relationship negotiated following a vote for UK withdrawal, said Mr Carney. This negotiation could be protracted. In fact, it is likely to be with twenty seven other countries involved. Ministers are warning of at least 10 years of "uncertainty" if the UK votes to leave the European Union. A government analysis says the economy, financial markets and the rights of Britons living overseas could be affected during a complex negotiation to "unravel" the UK's membership.
The Leave campaign cannot explain what would happen if it wins the referendum.
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