The Governor of the Bank of England, Mark Carney, has given evidence to MPs on the potential implications of leaving the EU.

Mr Carney said the City of London would "without question" lose business if it failed to negotiate the continuation of existing mutual recognition agreements within the financial sector following a vote for Brexit.

He warned that negotiations of this kind "in general take a very long time to achieve" and may involve ceding some measure of the UK's sovereignty.

Mark Carney, Bank of England Governor

In a heated debate with MP Jacob Rees-Mogg, Mr Carney was accused of damaging the Bank's reputation by making "speculative" pro-EU comments without the facts to support the view.

Mr Rees-Mogg said: "It is beneath the dignity of the Bank of England to be making speculative pro-EU comments."

Mr Carney hit back at the comments, giving the example that banks are headquartered in London because of the "passporting ability" of this economy, by virtue of being a member of the EU.

Questioned by leading Tory Eurosceptic Steve Baker, Mr Carney flatly denied that he had been pushed by Downing Street into highlighting the risks of Brexit.

"We are expressing views that are the views of the institution," he said. "We are not leaned on by anybody.

"It would have no effect if they tried."

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