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

Criticizes Remain campaign forecasts

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 said forecasts of a materially weaker UK as a result of Brexit are "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. Post-Brexit turmoil prompts record level of sterling shorts "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 b...