Mervyn King: Brexit puts UK in better position to rebalance economy

Criticises Remain campaign forecasts

Daniel Flynn
clock • 1 min read

Sterling's weak performance in the wake of June's Brexit vote could allow the UK to re-balance its economy, according to Mervyn King, as he described forecasts of a materially weaker UK as a result of Brexit as "highly speculative".

The former governor of the Bank of England (pictured) told Central Banking magazine that sterling's 9% collapse since the Brexit vote could lead to a rebalancing of the economy from consumer spending to exports, creating a more sustainable future. "We are now in a better position to rebalance the UK economy," he said. "An unfortunate aspect of the campaign was the government forecasts of what the consequences of Brexit might be, which inevitably were highly speculative, in particular for the long run." Research published before the vote by the BoE and the Treasury suggested the UK wou...

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