Ex-BoE's Mervyn King criticises Remain's exagerrated claims

Ex-Bank of England governor Mervyn King reportedly criticised the ‘Remain’ camp’s “exaggerated claims” about the costs of leaving the European Union.

In an interview, King said current BoE governor Mark Carney’s own credibility had not been damaged by the referendum campaign, according to Bloomberg.

“I don’t think it’s at all damaged his credibility. It’s damaged the credibility of the politicians on the side of who wanted the UK to vote to remain,” because they put forward exaggerated claims.

The “most important thing” now for the UK was to have an effective government and opposition, he said.

King also expressed confidence in the resilience of Britain’s financial system.

“Big changes in exchange rates would be needed in order to get back to a stable position,” he said.

As regards interest rates or money printing, he was certain “the right thing would be to wait-and-see, even just a week or two”, while adding that monetary policy was no longer the answer to reaching a new equilibrium.

His comments echoed those made on 20 April to the same broadcaster when he said he was worried that both camps in the referendum debate might be inclined to exaggerate the potential costs of staying in or out.

On that occasion, King also referenced how economic weakness in the euro area had hurt Britain’s attempts to rebalance its economy in 2010.

He also recalled the referendum held in 1975 on whether to join the EU or not, saying “both sides were wrong it would make a dramatic difference”.

In his opinion, the whole reason for the debate was to decide what role Britain should play in Europe.

It would be “very difficult” for any one country to get out of the current economic situation on it own, he said.