Bank of England can't do everything! Carney: BoE can't be expected to nullify Brexit hit

The central bank chief today claimed Britain’s new relationship with the European Union (EU) will be one of the biggest factors to impact the UK’s prosperity after Brexit.

And warned that Britons are set to suffer weaker wages as the UK leaves the EU, while banks and businesses could suffer shocks.

He said the Bank of England can’t deliver Britain prosperity and that will instead depend on the new deal between the UK and the EU.

Speaking ahead of Prime Minister Theresa May, Mr Carney told an audience that the Bank to help solve wider econmic issues, such as housing affordability to poor productivity.

He said: “Calls for the Bank to solve these challenges ignore the Bank’s carefully defined objectives.

“And they confuse independence with omnipotence.”

Brexit will now have the biggest impact on Britain’s economy and is out of the Bank of England’s control, according to Mr Carney. He said: “The biggest determinants of the UK’s medium-term prosperity will be the country’s new relationship with the EU and the reforms it catalyses.”

Mr Carney pledged that the Bank of England will do its best to balance any hit to jobs and economic activity and look to offset risks that rise from Brexit.

He said: “Even though monetary policy cannot prevent the weaker real income growth likely to accompany the transition to new trading arrangements with the EU, it can influence how this hit to incomes is distributed between job losses and price rises.”

Marking 20 years of Bank of England independence, Mr Carney said the Bank is now well placed to address a range of possible developments around Brexit.