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Mark Carney to appear before MPs after raising concerns about the economic outlook for the UK

The Bank of England governor, Mark Carney, will face questions from the newly formed Treasury Select Committee on Tuesday, to discuss matters concerning the outlook for interest rates and the precarious situation in Greece.

This marks the first opportunity for new members of one of the most influential parliamentary committees in Westminster to set out their agendas. Newcomers include SNP MP George Kerevan; Labour MPs Wes Streeting, Bill Esterson and Helen Goodman; as well as Conservative MPs Jacob Rees-Mogg and Chris Philp.

According to the Guardian, the Bank warned this month that the Greek debt crisis posed a potential risk to the financial system if it caused a blow to investor confidence and therefore freeze the buying and selling of certain assets.

Conservative committee chair Andrew Tyrie has also said he will ask questions regarding the leverage ratio- a key measure of the bank’s stability [1].

“The leverage ratio is an essential addition to the [Bank of England’s] toolkit for improving the stability of the financial system. A good deal of judgement is needed in its implementation and it is crucial that the Bank exercises it,” Tyrie said.

The committee will also question policymakers about their latest economic forecasts made in the May inflation report, when the Bank cut the outlook for GDP and wage growth but insisted Britain’s economic recovery remained solid.

Earnings rose an annual 3 per cent in the three months through May, compared with 2.7%, economists forecast in a Bloomberg survey. Including bonuses, wages increased 3.3%. Unemployment probably stayed at its lowest since 2008.

[1] Jessica Morris, “Bank of England governor Mark Carney readies for grilling from newly formed Treasury Select Committee,” www.cityam.com