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These effects, coupled with rising uncertainty, that could be expected to “remain elevated for some time”, pointed to “a materially lower path for growth and a notably higher path for inflation than previously thought”, the Governor said.
Marc Ostwald, an ADM ISI strategist, said that Mark Carney had “nailed his colours to the post with this speech” as the Canadian’s tone on the prospects for the UK after Brexit were no less vociferous than before the referendum.
“I would not be surprised if there were some politicians who call for him to be sacked, ” Mr Ostwald said. “That would be a stupid idea, especially given there are no hands on the tiller of government.”
The outcome of the ongoing Conservative leadership race could mean that Mr Carney will have to answer to one of the MPs campaigning for Brexit, some of who questioned the Governor’s position after the Bank published analysis of the likely economic impact of a choice to leave the EU.