Deputy governor of the Bank of England Charles Bean says another eurozone sovereign debt crisis could "derail" Britain's recovery, hitting businesses and households hard.
With the contagion spotlight now falling on Portugal and Spain after Ireland's bailout, sovereign debt fears have again intensified and Bean says any further deepening of the crisis could have grave consequences for Britain. Speaking at the Market News International Annual Seminar, Bean warned "an intensification of the difficulties in the euro-area periphery could also derail the recovery here". He said whilst UK banks should be able to absorb the financial hit of a second euro crisis, its knock-on impact on business and household could pose significant danger. Furthermore, Bean s...
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