Mark Carney denies Bank of England tried to scare people to vote Remain during EU referendum

At the Treasury Select Committee meeting, the visibly irritated Governor agreed to hand MPs notes of his conversations with George Osborne

Carney said conclusions about Brexit were reached from reports presented to committees and that the Governor had no power to influence them (AFP/Getty)

Mark Carney, Governor of the Bank of England, has strenuously denied that the Bank was biased in its warnings on the risks of Brexit.

In a heated conversation with the Treasury Select Committee, Mr Carney defended the Bank’s warnings over Brexit and accusations of bias, which he called “extraordinary in every sense of the word”.

Tory committee member Jacob Rees-Mogg, a Leave supporter, said that politicians had tried to influence the Bank of England but that it was the job of the Governor to ignore them and act independently.

"I'm perfectly capable of doing that," Mr Carney replied.

The Bank of England became embroiled in a bitter row over its independence in the month leading up to the EU referendum.

In a Treasury Select Committee meeting on 24 May, Mr Rees-Mogg accused Mr Carney of being "politically involved" and of bargaining with Chancellor George Osborne on warnings over the economic impact of Brexit.

Mr Carney denied the accusation at the time, stating that there was “no possibility of undue influence coming from the Treasury”.

Committee chair Andrew Tyrie reignited the debate in a committee meeting today, demanding that notes from Mr Carney’s conversations with Mr Osborne be released for scrutiny.

There are minutes kept of offical financial stability discussions between the Governor and the Chancellor that are publically released, Mr Carney said. However, he refused to publically release notes of his private conversations with Mr Osborne, stating that MPs could see them if they wished.

"I think it is important that Governors and Chancellors are allowed to have private conversations, I would expect that notes are taken of those discussions," Mr Carney said.

The Bank of England's Monetary Policy Committee warned in the run up to referendum that if the UK voted to leave the EU, the value of the pound would fall further, “perhaps sharply”, while households would delay spending causing lower demand and rising unemployment.

In a Financial Stability Report released after the referendum, the Bank of England said the risks of Brexit were already starting to impact the economy.

Mr Carney said these conclusions were reached from reports presented to committees and that the Governor had no power to influence them.

"That’s not the way the committee works. The chair does not guide conclusions. We are presented with reports and we use them to identify risks," he said.