The Bank of England has delivered an stark warning that the UK could suffer a severe economic shock if it votes to leave the EU.
Expressing its serious concern over the vote, a report from the Bank said: “A vote to leave the EU could materially alter the outlook for output and inflation, and therefore the appropriate setting of monetary policy.
“Households could defer consumption and firms delay investment, lowering labour demand and causing unemployment to rise”.
It is thought to be unprecedented for the Bank to outline the risks of a political issue in this way.
David Cameron responded immediately saying: “The Bank of England is right to warn leaving the EU could cause lower growth and unemployment to rise – that would hurt working people.”
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