Carney confident UK can achieve inflation target regardless of being in or out of EU

Bank of England (BOE) governor Carney declined to offer full analysis of Brexit issue, and said that nothing that the bank said should be interpreted as a recommendation on EU membership.

Carney said Pound could fall and lead to rise in inflation if Britons vote in favor of Brexit and added that the BoE can achieve inflation target over time regardless of being in or out of EU. He said that there are certain measures the BoE can take in the short term to support the functioning of the core of the financial system, but that is not to provide a blanket assurance that there would not be issues in the short term with respect to financial stability (in the event of a Brexit).

He noted that there could be lower levels of activity because of the degree of uncertainty that could affect investment and household spending, which can have short term implications for activity in the United Kingdom. Cable extended weakness post Carney's testimony, hits session lows at 1.4200.