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A top banker and professor at the London School of Economics has claimed global investors now view the UK’s economy as being more like that of Italy or Greece as opposed to the US or Germany. Sir Charlie Bean also said it is “disingenuous” of the Government to blame the economic upheaval on a “global phenomenon”.
He claimed this shift was due to the current state of “political and economic instability” in the country, reported The Times.
Sir Charlie appeared on the Sophy Ridge show on Sky News to say there is a “global element” to the UK’s higher interest rates and “three quarters or two thirds maybe is the world”.
However, he said the rest was a “UK-specific phenomenon and it’s developed since the mini-budget, so it’s clearly driven by that in my view.
“We’ve moved from looking not too dissimilar from the US or Germany as a proposition to lend to, talking more like Italy or Greece.”
Mr Bean has slammed Liz Truss and Kwasi Kwarteng’s decision to unveil the mini-budget without consulting the Office for Budget Responsibility (OBR) as “really stupid”.
The fallout from the mini-budget caused the pound to drop to its lowest ever level against the dollar.
UK gilt yields also soared, leading to an increase in Government borrowing.
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He continued: “I don’t think anyone should read anything like that into their mortgage rates or anything.”
New Chancellor Jeremy Hunt is expected to announce his fiscal plan on October 31.
However there are fears there is little “fat” to trim from budgets that will not further negatively affect public services.
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