Ex-Bank of England official warns of Brexit policy dilemma

Mark Carney will face a policy quandary if Britain votes to leave the European Union this week, according to former Bank of England deputy governor John Gieve.

While Brexit could mean interest-rate cuts or other stimulus are needed to support growth, Gieve said Carney, the Bank of England’s (BoE) governor, may also have to be wary of exacerbating a slump in the pound.

“There will be a shock to demand, so that means that there will be something pressing them to make policy more expansionary,” he said in an interview on Bloomberg Television.