Bank of England policymaker Forbes warns of EU referendum 'fog'

Bank of England policymaker Kristin Forbes said it was unclear whether uncertainty stemming from the UK's looming in-out vote from the EU was entirely behind softening economic data in the UK and Northern Ireland.

"My take is, there is a fog over the data. Some of the data is quite solid, and some of the data has been a bit softer. We aren't quite sure why," said the professor who is on fact-finding mission in Northern Ireland, the Belfast Telegraph reported.

"It could be related to uncertainty around the referendum," she said.

The 23 June referendum will decide whether the UK continues as part of the EU, but a growing number of polls suggested it would continue its membership. For the minute, though, that was not much help to businesses.

"If I'm a company, and I know that in a month there will be a vote which might change my input costs, who I am selling to, it makes sense to delay having new workers, starting a new project or agreeing to a big salary increase until after that uncertainty," Forbes said.

"That could explain some of the softening. If that is the case, if there is a vote to remain, then that uncertainty is lifted quite quickly," said Forbes, who is an economist.

"We don't have concrete evidence that some of the softening we are seeing now is all referendum-related and uncertainty related, and there is a chance other things are going on."