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Families Down $1,200 After Brexit "Which is a Lot of Money" - Bank of England

© Photo : PixabayBritish pound notes
British pound notes - Sputnik International
Households in Britain are financially worse off after Brexit, according to the governor of the Bank of England. The head of the Bank of England admits Brexit has cost British households "a lot of money."

Giving evidence at a Treasury select committee hearing, Dr. Mark Carney claimed families were US$1,200 (£900) worse off following the European Union referendum held in the UK in 2016.

"Real household incomes are about $1,200 (£900) per household lower than we forecast in May of 2016, which is a lot of money," Dr. Carney said.

The Bank of England's governor also said Britain's economy was two percent smaller than predicted before the EU referendum was held in 2016.

READ MORE: Another Brexit Surprise: UK Retail Rebounds in April, Inflation Eases

Dr. Carney told the committee the UK's economy is "up to two percent lower than it would have been" before the Brexit vote.

"It's understandable why businesses are holding back — there are big decisions about to be made, why wouldn't they wait a little longer until the path is clear?" Dr. Carney suggested.

READ MORE: Pound Sterling Tumbles Again as UK Business Weigh Brexit Losses

The National Institute of Economic and Social Research (NIESR) had previously predicted households in Britain would be US$806 (£600) a year worse of following the ‘yes' vote to leave the European Union.

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