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Bank of England: Brexit could 'materially' lower UK growth

The Bank of England has warned that Britain leaving the EU could "materially" lower UK growth and lead to sharp falls in the value of the pound.

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PM: BoE has issued 'very clear message' of Brexit dangers

David Cameron said the Bank of England's message was 'very clear'. Credit: PA

Bank of England Governor Mark Carney's warning of a "technical recession" if Britain leaves the EU amounts to "a very clear message" of the dangers of Brexit, Prime Minister David Cameron has said.

Earlier, Mr Carney said a vote to leave the European Union on June 23 could "materially" lower UK growth and lead to sharp falls in the value of the pound.

Supporters of the Leave campaign have accused the Governor of risking a self-fulfilling crisis, as the London markets fell on the Bank's warnings.

But Mr Cameron insisted it was the Bank's job to warn of risks to security.

He also accused the Leave camp of "celebrating insecurity" after prominent backer Peter Hargreaves said the stimulus provided by uncertainties outside the EU would be "fantastic".

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