A further extract:

"The Bank of England governor gave MPs a clear reminder of the cost of the 2016 EU referendum today, by warning that households are £900 worse off today than expected.

During his testimony to the Treasury Committee, Mark Carney explained that the UK economy is currently 1% smaller than expected two years ago. That’s despite the world economy, and particularly the eurozone, growing faster than forecast since then.

According to Carney, if you adjust for the stronger global economy and the UK government’s fiscal easing, the UK is actually around 1.75% smaller, perhaps even 2%, than you might expected today.

That has a real impact on families and individuals across the country.

As Carney puts it:

If you map it onto household incomes, real household incomes are about £900 lower than we forecast, which is a lot of money.

Some of this loss can clearly be ascribed to Brexit. Business investment has been up to 4% weaker than forecast -- as firms have been hit by uncertainty over Britain’s future trading relationships.

Households have suffered by the drop in real incomes (which turned negative last year), due to the plunge in sterling after the referendum. The weaker pound drove up inflation, meaning salaries and pensions didn’t go as far in the shops.

As Carney puts it:

“There are Brexit effects that come through”

But, the governor did also cite Britain’s ongoing productivity problems - partly due to weak investment, but also due to a series of wider issues that can’t be pinned on the Brexit vote.

In conclusion, Carney warned:

“In the short term, over the last year and a half, there has been an impact relative to what we would have expected, even with some pretty good tailwinds on the back of this economy.”"