Bank of England: Brexit Poses Biggest Domestic Risk to Financial Stability

Bank of England Governor Mark Carney said that economic uncertainty could amplify risks in such areas as housing, market function and the impact on the British sterling.

MOSCOW (Sputnik) – A vote by the United Kingdom on its future in or outside the European Union in June's referendum will pose the "biggest domestic risk" to Britain’s financial stability, Bank of England Governor Mark Carney said.

"It is the biggest domestic risk to financial stability, because in part of the issues around uncertainty. I would say that in my judgment the global risks, including from China, are bigger than the domestic risks," Carney told the Treasury Select Committee Tuesday.

The economic uncertainty could amplify risks in such areas as housing, market function and the impact on the British sterling, he noted.

UK citizens are set to vote on June 23 in a referendum on the country's EU membership, after UK Prime Minister David Cameron and the leaders of the 27 other EU member states reached a deal in February to grant London a special status within the bloc.

Cameron, who won the 2015 election on a promise to renegotiate the terms of Britain's EU membership, now leads the "Stay" campaign.