Bank of England's Mark Carney urges speedy EU referendum

The governor of the Bank of England on Thursday called on Prime Minister David Cameron to act with "appropriate speed" in holding his planned EU referendum, warning that the impending vote was causing business uncertainty.

Mark Carney said it was "in the interests of everybody" to resolve the question of Britain's EU membership, and that the election and referendum had created an uncertain investment climate.

The governor said that statistics suggested that so far, businesses had "not yet acted on that uncertainty" and were continuing to hire and invest, but he said the matter should be resolved as soon as possible.

"The government has made it clear it's a priority," he told the BBC. "I'm sure the government will act with appropriate speed in developing the negotiations and putting forward an appropriate question."

The PM has promised an in-out referendum on Britain's EU membership by the end of 2017, but ministers are talking about holding the poll in 2016 if they can.

Mr Cameron would prefer to hold an early referendum to capitalise on his newfound momentum after last week's election win, building on his mandate to secure a quick renegotiation with Britain's EU partners.

But there are some constraints - not least the willingness and ability of the 27 other EU member states and the European Commission to conclude a deal with Mr Cameron within a matter of months.

Mr Cameron also has to enact legislation to allow the referendum to take place; ministers believe that the bill may not reach the statute book until early 2016 by the time a hostile House of Lords has scrutinised it.

Ministers are eyeing a vote in the summer of 2016, although a more likely date is thought to be autumn 2016, allowing more time to run a campaign in favour of Mr Cameron's reforms.

French and German elections in 2017 would be a complicating factor if negotiations were to drag on.

But British officials have also speculated on the possibility of striking a deal in June 2017 after the French elections - amid hopes in London that France might elect a centre-right president to replace the socialist Francois Hollande - but before the German elections in the autumn of 2017.

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