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PM: BoE has issued 'very clear message' of Brexit dangers

David Cameron said the Bank of England's message was 'very clear'. Credit: PA

Bank of England Governor Mark Carney's warning of a "technical recession" if Britain leaves the EU amounts to "a very clear message" of the dangers of Brexit, Prime Minister David Cameron has said.

Earlier, Mr Carney said a vote to leave the European Union on June 23 could "materially" lower UK growth and lead to sharp falls in the value of the pound.

Supporters of the Leave campaign have accused the Governor of risking a self-fulfilling crisis, as the London markets fell on the Bank's warnings.

But Mr Cameron insisted it was the Bank's job to warn of risks to security.

He also accused the Leave camp of "celebrating insecurity" after prominent backer Peter Hargreaves said the stimulus provided by uncertainties outside the EU would be "fantastic".

BoE governor addresses Brexit 'elephant in the room'

Bank of England governor Mark Carney addressed the "elephant in the room" as he outlined the main reasons why UK growth is predicted to lower "materially" in the event of a Brexit.

He said a vote to leave the European Union would "lower growth materially and raise the rate of inflation notably".

"In the face of greater uncertainty about the UK's trading relationships, sterling would likely depreciate further, perhaps sharply," he added.

"This would likely be consistent with changes to some of the real fundamentals that drive sterling, including the terms of trade, productivity, and risk premium."


Cameron: BoE 'right to warn' about leaving the EU

The prime minister has said the Bank of England is "right to warn" leaving the EU could "hurt working people".

The Bank has warned that a Brexit could materially" lower UK growth and lead to sharp falls in the pound.

Osborne: BoE warning 'big moment in EU debate'

Responding to the Bank of England's warning that a Brexit vote could "materially" lower UK growth, the Chancellor said it was a "big moment in the EU debate".


RBS losses more than double last year's figure

Credit: Yui Mok / PA

The Royal Bank of Scotland has reported a first quarter pre-tax loss of £968 million - more than double last year's of £446 million.

The loss reflects the impact of its £1.2 billion payment last month to the Treasury to buy out a crucial part of its £45 billion bailout.

The payment ended a dividend access share (DAS) agreement with the Government which was put in place in 2009 and prevented it paying dividends to any shareholders before the Treasury.

The bank said: "RBS remains on track with its plan to build a strong, simple, fair bank for customers and shareholders."

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