Brexit could lead to recession, says Bank of England

Central bank issues unprecedented warning over EU vote, claiming exit could depress pound and raise unemployment

The Bank of England has warned for the first time that Britain could slide into recession in the aftermath of a vote to leave the EU in next month's referendum.

Governor Mark Carney also warned Brexit could knock the pound sharply lower, stoke inflation and raise unemployment. That would leave the Bank with a difficult balancing act as it decides whether to cut, hold or raise interest rates to counter opposing forces, Carney added.

Related: Bank of England: Brexit would mean 'lower growth and higher inflation' - live

Leaving EU would stoke inflation & hit growth, leaving MPC with no-win choice on interest rates. UK would be poorer https://t.co/pfg1rBArlw

The Bank of England is right to warn leaving the EU could cause lower growth and unemployment to rise - that would hurt working people.