Former Bank of England policy maker Andrew Sentance said Governor Mervyn King is “misleading the public” by saying the U.K. is potentially facing its worst financial crisis ever, the Sunday Times reported, citing Sentance.
“Members of the public do not make a clear distinction between the financial system and the economy as a whole and they may think he is saying his is the worst economic situation since the 1930s or before,” Sentance said, according to the newspaper. “I think this is very dangerous and it misleading the public.”
King last week said the first loosening of U.K. monetary policy since 2009, was a response to what may be the worst financial crisis ever. The U.K. central bank raised the ceiling for so-called quantitative easing to 275 billion pounds from 200 billion pounds.
“To talk in these terms is not really helpful,” said Sentance. “What we need to do is the current environment is sustain consumer confidence.”
He reiterated that he didn’t think the higher asset purchases “will help growth and it risks sustaining the surge in inflation.”