Bank of England chief: we won't predict EU exit consequences

LONDON (AP) - The Bank of England will not be predicting the likely economic consequences of a British vote to leave the European Union, governor Mark Carney said Tuesday - but he acknowledged that uncertainty about the outcome was fueling instability for the pound.

Carney spoke as the opposing sides in the EU debate traded allegations about the economic impact of leaving, a prospect known as Brexit.

The heads of almost 200 firms warned in a letter to The Times newspaper that a British vote to leave the EU in a June 23 referendum would "deter investment, threaten jobs and put the economy at risk."

Signatories included CEOs at over a third of the FSTE 100 firms, among them Bob Dudley of BP, Royal Dutch Shell's CEO Ben van Beurden and Burberry CEO Christopher Bailey.

The chiefs of Heathrow and Gatwick airports also signed, but there were some notable absentees, including the bosses of retailer Tesco and Barclays bank.

The letter was organized with the support of Prime Minister David Cameron's office.

London Mayor Boris Johnson, one of the most prominent backers of a "leave" vote, said many business leaders had also warned in the past of dire consequences if Britain did not join the euro single currency. Britain kept the pound, and avoided much of the turmoil in the eurozone in recent years.

Carney told Parliament's Treasury Committee that the central bank was "not making a judgment about the potential outcome of the referendum ... or an assessment of the potential consequences of a leave vote."

The looming June 23 vote has caused jitters for Britain's pound, which hit a seven-year low of $1.4058 Monday before rallying to just above $1.41.

Carney said the currency's volatility has "spiked to levels consistent with around the height of the Scottish referendum" on independence in 2014.