UK Households £900 worse off since Brexit

Brexit leaves UK families £900 worse off
Mark Carney, Governor of the Bank of England, speaks at Parliament's Treasury Committee

The Governor of the Bank of England, Marc Carney, has stated that households are £900 worse off due to Brexit.

Mr Carney said:”If you map it onto household incomes, real household incomes are about £900 lower than we forecast, which is a lot of money.”

Giving testimony in Parliament to the Treasury Committee, Carney stated that the UK GDP had lowered by 2%, or the equivalent of £49 billion, due Brexit.

He said: “If you look at where the economy is today, relative to that forecast, it’s more than 1 per cent below where it was despite very large stimulus provided by the Bank of England, a fiscal easing by the government and global and European economies, which are much much stronger than they were previously.”

“If you adjust for those factors, the economy is about one and three-quarters – one and a half, one and three-quarters, up to 2 per cent – lower than it would have been.”

Commenting on interest rate expectations, Carney said that more than three quarters of households expect rate increases over the course of this year and then to proceed at a very gentle pace relative to history.