Bank of England Secretly Researching Brexit Financial Shocks

Strategic Insights -

Bank of England officials have been conducting a covert study of the potential financial shocks that could hit Britain if the UK votes to leave the European Union in the upcoming referendum. The project, code-named "Project Bookend," aims to examine the economic implications of a British exit, or "Brexit," while keeping the investigation under wraps to avoid influencing the highly charged debate around the referendum. The Bank's secrecy has already come to light, with an email detailing the project's intentions mistakenly sent to a Guardian editor. The email reveals that officials are working to keep the project hidden from the press and most staff at the Bank.

Key Takeaways:

  • Project Bookend is a covert study examining the potential financial shocks of a Brexit, dubbed a "high-risk project" by Bank officials.
  • The project involves a small group of senior staff, including Sir Jon Cunliffe, deputy director for financial stability, and James Talbot, head of the Bank's monetary assessment and strategy division.
  • The Bank intends to keep the project under wraps, with staff instructed to downplay the project's significance and avoid discussing it with colleagues.
  • The email leak suggests that Bank officials are aware of the potential controversy surrounding the project and aim to conceal it from the public and parliament.
  • The project is likely to be a sensitive issue, given the Bank's role as the UK's main financial regulator and its close ties to the EU.
  • Parliament may now press the Bank to reveal details of the project, including whether other undercover projects are underway.

Statistics:

  • The project was accidentally revealed in an email sent on May 21, which was mistaken for a recipient by the Bank's head of press, Jeremy Harrison.
  • The project involves a small group of senior staff, with Sir Jon Cunliffe and James Talbot listed as key team members.
  • The email proposal suggests coordinating a response to press inquiries, indicating that the project's secrecy is sensitive and potentially newsworthy.

Sources:

  • The Guardian: Bank of England officials 'accidentally' reveal secret Brexit research project.
  • Bank of England spokesperson.