The outcome of the EU referendum is now the "largest immediate risk" facing global markets, the Bank of England has warned.
The central bank said there are "risks of adverse spill-overs to the global economy" from the result of the vote on 23 June.
It is also "increasingly likely" that the value of the sterling would continue to fall in the event of a Brexit, the Bank added.
The comments came as it announced that interest rates would be kept on hold at 0.5% for another month.
In the minutes of the meeting of the Monetary Policy Committee, which sets rates, the Bank said: "An increasing range of financial asset prices has become more sensitive to market perceptions of the likely outcome of the forthcoming EU referendum."
It stressed that the volatility of the pound has not be this high since the height of the financial crisis in October 2008. The Bank also repeated May's warning that "vote to leave the EU could materially alter the outlook for [economic] output and inflation".
Earlier today, a report by the BBC revealed that Mr Carney had clashed with Bernard Jenkin MP, a key figure in the Vote Leave campaign.
Mr Jenkin had accused the governor of the Bank of England of breaking purdah - rules which prevent publicly funded bodies from making statements on political votes in the run-up to polling day.
Mr Carney has openly spoken about the negative effects a Brexit would have on the UK economy, stressing that it would cause an economic shock and could spark a "technical recession". Officials at the Bank considered Mr Jenkin to be a "threat" which contained "numerous and substantial" about the central bank and its remit.
In his initial letter to Mr Carney, the Vote Leave director said:
"You have already made your views known about the question of the forthcoming referendum.
"The concern is that you, as Governor of the Bank of England, or others who serve the Bank, may have occasion to make further public comment on matters arising from the question on the ballot paper for the referendum.
"You are prohibited from making any public comment, or doing anything which could be construed as taking part in the referendum debate."
In his response, Mr Carney said: "All of the public comments that I, or other Bank officials, have made regarding issues related to the referendum have been limited to factors that affect the Bank's statutory responsibilities and have been entirely consistent with our remits."