The City of London would lose its position as a leading centre for financial services if the UK votes to leave the EU, Bank of England Governor Mark Carney has warned.
Appearing at the House of Lord economic affair committee, Carney (pictured) said a vote to leave the EU would ‘make it less likely that London would retain its position’ at the centre of European financial services, reports the Telegraph.
Much of the City’s importance is derived from ‘the UK’s membership of the EU and ease of access to the euro area that it is afforded’ according to Carney.
He said the City would still remain a financial centre without this membership, but its importance would be ‘smaller’ if the UK was not an EU member.
‘[The City would] retain a position of great importance, but I’m not sure he adjective preeminent would necessarily apply,’ he said.
Carney also warned that a decision to leave the EU in the 23 June referendum would damage the UK’s economy.
Earlier this week the Treasury published an analysis of the impact of leaving the EU on the UK economy. It claimed a Brexit would shrink the UK economy by 6% and lose every household £4,300.
Carney said these figures made ‘broad sense’ and matched the Bank’s own calculations of the impact of a vote to leave.
Source: New Model Adviser