King: Euro area shocks 'could be worse than you imagine'

His comments came while giving evidence before the Treasury Select Committee on the Bank of England's latest Inflation Report, along with other members of the Monetary Policy Committee. "What we are facing is a situation where painful adjustments need to be made, irrespective of how the euro crisis plays out," he said. "I don't see much point trying to speculate about the worst case. It is always possible to find things, as they pan out, that are even worse than you could imagine." He went on to warn there were "early signs of a credit crunch" in Europe because of the continuing de...