Bank of England Governor Mark Carney in a testiment before the Treasury Select Committee on 24 May 2016 defended his obligation to assess economic risks related to Brexit. He said that the the referendum decision could “materially change the trade-off.” Earlier this month, the Bank said a decision to leave the EU could cause a sharp slowdown in growth and a rise in inflation. Carney also said there was a risk of a two-quarter recession.

BOE’s judgment was unanimous with Broadbent, Weale and Vlieghe, all agreeing that the referendum’s most likely impacts would be those set out in the inflation report. They agreed a so-called Brexit may slow growth and cause a drop in sterling that may boost inflationary pressures.

Earlier this month BOE published its quarterly Inflation Report, which included the strongest warning yet that a vote to leave the EU would harm the economy. BOE cut its own growth projections this month, and Vlieghe said last week that more stimulus may be needed even in the event of a vote to remain in the EU.

Carney highlighted that the Financial Policy Committee is also united in thinking Brexit is the most significant domestic downside risk. FPC officials Donald Kohn, Martin Taylor and Richard Sharp are due to speak later Tuesday.

The BoE is due to make a monthly policy statement on June 16, a week before the in-out vote and Carney said he did not expect the central bank to make fresh comments about the risks of Britain leaving the European Union before the country's EU membership referendum next month.