Mark Carney signals Bank of England may raise forecast for UK economy

Governor tells MPs fears over impact of Brexit vote have receded and EU countries face greater risk than Britain

The Bank of England looks set to upgrade its forecasts for the UK economy after admitting that some of the risks posed by the Brexit vote last June have now receded.

Giving evidence to the Treasury select committee, governor Mark Carney said the Bank's actions to avoid a market meltdown after the referendum were a key reason why Threadneedle Street might be raising its forecasts for a second time.