Carney: Brexit could lead to technical UK recession

Monetary tools available

Bank of England governor Mark Carney has said a technical recession is a possibility as a result of the UK voting to leave the EU in the upcoming referendum, but said there is room in monetary policy to boost growth through conventional or unconventional tools.

In May's Inflation Report, the Monetary Policy Committee downgraded growth forecasts for 2016 from 2.2% to 2% and said if the UK does leave the EU, "supply growth is likely to be lower over the forecast period". "We have made our judgements based on rigourous analysis and careful consideration," Carney (pictured) told the press at a conference following the release of the report. "There is a range of possible scenarios [should the UK leave] and that could include a technical recession. But we are not making any long-term assessments of the consequences. We are talking about the risks ...