That’s it for today, thank you for joining us. We’ll be back again in the morning. AM  US markets are up in early trading.  Ireland’s economy grew by a massive 26.3% in 2015, following a surge in foreign investment.  A major boost came from foreign companies that switched their base to Ireland, increasing the value of the country’s corporate sector.  Michael Connolly, a senior statistician at Ireland’s Central Statistics Office, said:  What happens here is that an entire balance sheet of a company relocating to Ireland from somewhere else is included in our capital stocks or our international investment position.  The very dramatic increase has increased the capacity for production in the economy and impacts the accounts for 2015 in the increase of exports and imports.  Read our full story on the figures here:  Related: Irish economy surges 26% as revised figures take in foreign investment  German finance minister Wolfgang Schaeuble has been speaking in Brussels, where he joined other EU finance ministers for the latest Ecofin meeting.  He called for Britain to be clear about its Brexit decision as soon as possible to limit long-term uncertainty.  Speaking separately in Berlin, the German Chancellor Angela Merkel said her government’s goal is to ensure Brexit does not have an impact in Germany.  The FTSE 100 has risen above 6,700 for the first time since 11 August.  Investors continue to be cheered by the swifter-than-expected conclusion to the Conservative Party leadership contest, with Theresa May confirmed on Tuesday as the UK’s new PM.  The FTSE is up 0.3% or 18 points at 6,701.  The pound is up 1.2% against the dollar, at $1.3152.  It is up 0.9% against the euro at €1.1850.  Back in the wider world, European markets are higher.  The FTSE 250 is up 0.6% at 16,803.  Mark Carney came under considerable pressure from MPs, who quizzed him on the Bank’s position in the lead up to the referendum on 23 June.  It was the governor’s first appearance in front of the Treasury Committee.  Key points from the session:  Will the Brexit decision be negative for foreign direct investment over the long term, Tyrie asks Richard Sharp, an external member of the FPC?  In the short to medium term yes, Sharp answers, in the longer term it will depend on policies and agreements struck.  And that concludes the session. Full story and summary to follow.  The governor says a weaker pound should improve the current account deficit, making it smaller.  If maintained, the drop in the pound since the referendum would reduce the current account deficit by about a third, Carney estimates.  Turning to the downsides of the Brexit vote for the current account, Carney includes the reduction in foreign investment in UK commercial property, and the “modest increase” in risk premium associated with UK assets.  When institutions try to bluff their way through risks, sweeping them under the carpet it is “exactly the wrong thing to do”, Carney says.  Carney turns to the fall in the pound since the referendum.  The exchange rate move can help the UK adjust to the post-Brexit environment, including the change in trade terms that will follow, the governor says.  FPC member Donald Kohn says that if you are going to make a major decision to build a factory or open a new office in the UK, you would want to know what the terms of trading would be with other countries.  Andrew Tyrie follows up by saying the Bank’s MPC and FPC would have come in for considerable criticism had they not commented on the potential consequences of Brexit in the run up to the referendum.  Deputy governor Cunliffe says the Bank’s reputation would have been damaged if it had not warned of Brexit risks before the vote.  Conservative MP Jacob Rees-Mogg is up. He clashed with Carney in the run-up to the referendum, accusing the governor of being in the pocket of the chancellor on the remain side of the campaign.  Rees-Mogg asks whether the Bank must be like Caesar’s wife, “above suspicion”?  The MP is pressing on with the idea that Carney showed political bias in the run-up to the referendum by arguing that being a member of the EU would be net beneficial for the UK economy. Carney rejects the idea.  The Conservative MP is now taking Carney to task on his comment pre-referendum that UK rates could go either up or down in the event of a Brexit vote.  Was it ever likely that policy would be tightened, Rees-Mogg asks, or did it just suit the chancellor’s argument? Carney says the statement was a balanced view, reflecting the views of the MPC as a whole.  The governor is keeping a fairly cool head in the face of some hostile questioning by Rees-Mogg.  Carney gets the last word, suggesting those questioning whether the Bank was biased “should consider their [own] motivations their judgements?”  Markets are hedging “downside risk” according to Carney, which is why we have seen record low bond yields.  Low bond yields do not give an accurate signal of the future of the UK economy. “The financial system can withstand huge shocks. There will be growth”.  Carney is talking about the ultra low rates environment we are currently in. The governor suggests that the Bank still has tools up its sleeve should it need them.  We have the tools to meet our responsibilities for both monetary and financial stability.  Carney continues to sound the same reassuring note he has adopted since the Brexit result was known on 24 June.  Economists believe the Bank’s Monetary Policy Committee will announce fresh measures to stimulate the UK economy - possibly as early as Thursday when it announces its monthly policy decision.  The MPC could further cut interest rates (from 0.5%) or extend quantitative easing (from £375bn), or both.
Bank of England governor takes questions from the Treasury committee on the outlook following Britain’s decision to leave the EU