The Bank of England admits it is studying the impact of a UK exit from EU• 

• The bank's study was accidentally revealed in email to media

• UK central bank is anxious to remain out of political debate

LONDON, UK - The Bank of England has admitted that it is assessing the implications of a possible UK exit from the European Union, after an email about the confidential research project was inadvertently sent to a newspaper.

The Guardian reported that an aide to a senior bank official said in the email that the project should be kept secret from most of the bank's staff and that any journalists asking about it should be told the bank was examining a broad range of European economic issues.

British Prime Minister David Cameron was re-elected on a mandate that promised a referendum on EU membership and has pledged to reshape Britain's ties with the EU before holding the in-out vote by the end of 2017.

The bank confirmed its intention to launch the assessment, but appeared eager to remain out of any political debate regarding Europe. "It should not come as a surprise that the Bank is undertaking such work about a stated government policy," it said in the statement posted on its website.

"There are a range of economic and financial issues that arise in the context of the renegotiation and national referendum. It is one of the bank's responsibilities to assess those that relate to its objectives," the statement added.

Many British business leaders are worried about the possibility of losing access to their main export markets in Europe and there are also concerns about the impact on the UK's financial services industry.

The Guardian reports that the email was written by the private secretary of Jon Cunliffe, a deputy governor responsible for considering potential risks to the economy from the banking and financial services sector.

The email was mistakenly sent to the Guardian by a member of the bank's press office and although the bank said in its statement that the finding of the assessment would be made public before the referendum, it refused to comment further.

Link:http://www.australianherald.com/index.php/sid/233142765