Nonetheless, Mark Carney says it's important to keep the economic impact in perspective. 

He estimates the UK economy is currently growing at around half the rate it was ahead of the EU vote. 

And he notes that the Bank's forecasts ahead of the vote were still above consensus predictions.

Mr Carney says the Bank was very clear in its Inflation Report that it expected economic indicators to bounce back after the first reaction to the Brexit vote, noting they tend to "overshoot in the first instance". 

Mr Carney has clearly done his homework. When pushed as to where exactly the Bank made this clear, the Bank governor answers "It's on p39".

Under further questioning from Jacob Rees-Mogg, Mark Carney insists that the Bank has helped create the conditions which have helped the economy appear to adjust, at least so far, to the unexpected outcome of the EU referendum vote.

"This financial system sailed through what was a surprise to the vast majority of financial market participants and the currency, while it adjusted..it adjusted in a way consistent with a broader adjustment in the economy," he says.

Image source, Getty Images

Conservative backbencher Jacob Rees-Mogg is pushing Mark Carney on whether what he calls the Bank's "dire warnings" about the impact of Brexit were really necessary.

He also says that the residential property market and the stock market have "held up well".

Mr Carney takes issue with the word "dire".

"What we said was there was the propsect of a material slowing in growth and a notable rise in inflation.

"That is not dire. That is not a deep recession," he says.

Image source, Getty Images

Bank of England governor Mark Carney says he's "absolutely serene" about the Bank's forecasts about the potential impact of Brexit. 

He says he welcomes the signs of stabiilsation in the economy, but insists there has been an impact. 

One example he gives is commercial real estate transactions which he says have been more than cut in half since the start of the year. 

"I am absolutely serene about the ... judgments made both by the MPC and the FPC, more specifically market events. Liquidity pressures that were met because of contingency measures that we had taken in response to the judgments of the Financial Policy Committee absolutely validated the steps that we and other central banks and other authorities around the world had taken." 

Treasury Select committee chair Andrew Tyrie begins with two charges aimed at Bank governor Mark Carney, firstly that he over-egged the potential economic dangers of a Brexit vote in the referendum of 23 June, and secondly that he "encouraged an over-reaction" after the UK voted to leave the EU.

That's it for now from Sports Direct.

The Mark Carney grilling has now begun. The Treasury Select Committee hearing will focus on the August quarterly inflation report and whether the Bank of England has over-reacted to the Brexit referendum, and overdone the gloom. 

We'll be reporting all the best bits so stay tuned. 

Image source, Getty Images

Australia's trade minister has confirmed that formal talks on a new deal with Britain cannot take place before Brexit.

Steven Ciobo said there had been preliminary discussions - but Australia would prioritise negotiations to strike a trade deal with the EU.

After widespread criticism of its employment practices, Sports Direct has promised to give all its staff on zero-hours contracts an option of a guaranteed minimum number of hours.

It also says it will suspend its "six strikes and you are out" disciplinary procedure. However, many of the workers will not qualify for the new conditions, because they are agency staff.

Workers at the main warehouse in Shirebrook, Derbyshire gave the PM programme their reaction to the announcements.

(Photo: Unite union members protesting outside Sports Direct AGM Credit: BBC )

If you'd like to see the search in its full glory, Buzzfeed business editor Simon Neville has kindly provided some video footage.

Enjoy...

If you were sceptical that Sports Direct founder Mike Ashley really did get searched when leaving Shirebrook warehouse he's put on a demonstration to show he's up for the same treatment as his staff.

That's a lot of £50 notes.

It's hardly a ringing endorsement, but Sports Direct shares have recovered slightly following the presentation. They're currently down 6.6% from their earlier 8% fall. 

Grace Hetherington from the charity ShareAction UK, which promotes responsible corporate governance, gives her take on why Sports Direct chairman Keith Hellawell is staying.

Image source, Reuters

Away from Sports Direct, investors in discount retailer Poundland have approved a takeover by South African retailer Steinhoff. 

They voted 97% in favour, external of the deal.

Steinhoff increased its offer to £610m last month after pressure from US hedge fund Elliot, a Poundland shareholder.