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Bank of England mis-sends Brexit email to press
The Bank of England was forced on Friday night to confirm it was secretly researching the financial impact of a possible decision by Britain to leave the European Union, after it mistakenly emailed a journalist with the details.
The confidential email, mis-sent to the Guardian newspaper, is reported to include details of the study, dubbed Project Bookend. It also stated that the press and most staff at the Bank should be kept in the dark about the work under way.
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The decision by the Bank comes only weeks after the Conservative party secured a majority in the UK general election, paving the way for a referendum on British membership of the EU by 2017.
David Cameron, prime minister, begun on Friday discussing with European partners how to renegotiate the position of the UK in the EU ahead of the referendum.
The Bank of England issued a statement responding to the revelation saying it was entitled as a regulator to conduct studies over possible financial shocks which could hit the UK.
“It should not come as a surprise that the Bank is undertaking such work about a stated government policy,” it said. “There are a range of economic and financial issues that arise in the context of the renegotiation and national referendum. It is one of the Bank’s responsibilities to assess those that relate to its objectives”.
According to the Guardian, the email was sent by the private secretary of Sir Jon Cunliffe, the Bank’s deputy governor for financial stability, to four senior executives and then mistakenly forwarded by Jeremy Harrison, the Bank’s head of press, to a journalist.
The revelation will raise questions over whether it is appropriate for the Bank to undertake such studies in secret. Mark Carney, Bank of England governor, took major steps last December to increase transparency within Threadneedle Street, promising to publish voting details and minutes of interest rate decisions at the same time they are announced.
“These changes will enhance our transparency and make us more accountable to the British people,” Mr Carney said then.
However, the Bank insisted that it was right to hold such studies secretly, drawing analogies with work done ahead of last year’s referendum on Scottish independence.
“It is not sensible to talk about this work publicly, in advance. But as with work done before the Scottish referendum, we will disclose the details of such work at the appropriate time”.
The Bank confirmed it would be looking into its processes in light of the incident.
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