Jeremy Corbyn's economic policies would "imperil" the British economy, the governor of the Bank of England has warned.
Speaking to the Treasury Select Committee, Mark Carney said that the new Labour leader's economic policies would "hurt" the poor and elderly in the UK and increase inflation above necessary levels.
During his leadership campaign, Mr Corbyn and his new shadow chancellor John McDonnell have called for "People's Quantitative Easing" and the Bank of England to have its independence stripped away.
A combination of those policies would see the Bank of England “given a new mandate... to invest in large-scale housing, energy, transport and digital projects”.
Asked about the impact of such policies on the economy, Mr Carney said: “The issue would be imperilling potentially the achievement of price stability. The consequence of that of course would be inflationary.
“The people who tend to get hurt the most by inflation are the poor, the elderly, those that can’t hedge themselves — that’s been the experience throughout history and I’m sure that will be the experience in the future if the Bank of England were not to conduct policy not consistent with achieving its mandate from parliament.”
The Bank of England governor also called for the organisation to retain its political independence. He said: “The construct here where bank operates with independence to ... achieve a mandate that is defined by the people through parliament is the right model.”