LONDON, Feb 24 Reuters Bank of England Governor Andrew Bailey and other top Bank officials spoke to parliaments Treasury Committee on Wednesday.

The following are highlights

EU ON BANK LOCATIONS

Bailey said postBrexit moves by the European Union to require banks to justify why they are not moving activities away from Britain were of dubious legality.

It would be very controversial in my view because legislating extraterritorially is controversial anyway and obviously of dubious legality, frankly.

And that would be very controversial, frankly. I think it would be a very serious escalation of the issue and Im not going to obviously say how the government would react to that because thats for the government to think about and we will work very closely with them on this but it would be a very serious escalation in my view of the issue.

ON U.S. FISCAL PACKAGE

Bailey said he was not worried about inflation in the U.S. No I think Im confident that the Federal Reserve are a capable central bank actually.

We have quite a strong growth forecast for the U.S. for this year, or at least certainly when we did our forecast back in January, it was strong by comparison with others. The big question of course with the U.S. economy now going forwards is what the fiscal package ends up being. It is not agreed yet.

It will certainly contribute to global growth because the U.S. is obviously such a sizeable part of the global story. So there will be a spillover, a positive…