Brexit: Bank of England Report

Lord Forsyth of Drumlean Excerpts

Thursday 29th November 2018 Lords Chamber

[Lord Bates]

We were covering that very point when the Office for Budget Responsibility produced its forecast along with the Autumn Budget. This showed that the forecast made in April about what would happen was underscored, and actually we achieved more. It increased its forecast going forward because it believed there would be more employment, more taxes and less debt.

[Lord Forsyth of Drumlean (Con)]

My Lords, in defence of the Governor of the Bank of England, can my noble friend confirm that these are not forecasts but scenarios whereby the Government think of three impossible things that could happen before breakfast and then ask the banks to plan accordingly to show that they would have the capital required to meet those extreme conditions? To present these as forecasts is misleading and undermines the Bank of England in carrying out its responsible activities.

[Lord Bates]

My noble friend has immense experience in the financial services sector and banking. What he sets forward is precisely the position. These should not be misinterpreted. They should be placed in the wider debate going forward and not taken out of context. I wholeheartedly agree with him.