Walls’ Street: Bank of England boss under fire

Jason Walls and Andrew Patterson break down the week's biggest global economic stories on NBR Radio. With special feature audio.

Tensions are high in the UK as the referendum on Britain staying in the EU draws closer.

This week the Bank of England (BoE) governor Mark Carney came under fire for “taking a side” in the Brexit debate.

He has previously suggested if Britain were to leave the European Union, it risked slower growth, higher inflation and a recession.

This follows the IMF making similar comments last month. 

Although criticised for taking a stand, Mr Carney has defended his position.

He explained the BoE has a “responsibility to explain the risks,” adding he would be failing the public if he did not flag any dangers in advance.

Inflation in the UK took a hit this week, with figures from April edging down from March statistics.

According to the office for National Statistics, inflation dropped to 0.3%, due to falls in airfares, clothing and vehicle prices.

This has put more pressure on the BoE to cut it interest rate, which sits at 0.5%.

On the other side of the Atlantic, US Federal Reserve chairwoman Janet Yellen has told a congressman the Fed would “not completely rule out the use of negative interest rates in some future very adverse scenario.”

But she says policymakers “would need to consider a wide range of issues before employing this tool in the US.”

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