Officials Warn Against Brexit Effects

by Tyler Cichewicz

With Britain’s vote to leave the European Union fast approaching, The Bank of England has reiterated its warning that such a vote could cause economic fallout. Moreover, the BoE added that a vote to leave the EU could also hurt the global economy, which other British financial institutions and businesses have concurred.

BoE raises the point that global stocks and government bonds in many countries have hit record lows in anticipation of the referendum vote on June 23rd.

The Bank’s Monetary Policy Committee says that there, “Are also risks of adverse spillovers to the global economy.”

Those who support a vote to leave the EU criticize Mike Carney, Bank of England Governor, for overstating the financial threat. Carney’s response is that he has a duty to report the threat he sees.

As of six days out of the referendum vote, polls show that British voters slightly favor a vote to leave. A decision that many government, international, and business leaders have tried to stop citing financial uncertainty, poor economic effect, and security against terrorist forces as reasons why leaving the EU is a bad idea.

However, voters in support of a ‘leave’ vote believe that leaving the EU will have better long-term benefits.

Even those in support of remaining in the EU do not see Britain’s relationship with the EU as flawless. In fact, many of the same leaders who warn against the dangers of leaving the EU admit that Britain’s EU membership has apparent negatives; though the idea that a ‘leave’ vote is rash and will have negative results remains their stance.

The BoE and other financial institutions have said that the referendum vote, Brexit, is the most immediate economic threat right now.

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