Carney's `Brexit' Headache Worsens With Rate Outlook Schism

  • Economists see U.K. inflation picking up through this year
  • EU referendum vote presents binary outcome for rate views

Roubini Warns 'Brexit' Could Bring End of European Union

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Mark Carney could face a challenge in just over two months, regardless of whether Britons choose to stay in or quit the European Union.

While the Bank of England governor has signaled a slow tightening path, and investors see no rate increase for years, a vote to stay in the EU on June 23 potentially creates a whole new backdrop. With ‘Brexit’ risk removed, markets could pull in bets for a hike, generating a new communication hurdle for the Monetary Policy Committee, which holds its monthly meeting this week.