UK debt could be a stability risk, says BoE’s Sharp
FPC member goes against advice for central bankers to “stick to their knitting”
The Bank of England’s Richard Sharp warned in a recent speech that high levels of government debt in the UK could become a threat to financial stability.
Former BoE policymaker Willem Buiter famously said central bankers should “stick to their knitting” and not get involved with political questions. But in remarks on November 30, Sharp said he believed it was not beyond the financial policy committee’s (FPC) remit to discuss risks “emanating from long-term fiscal strategies”.
The level of debt
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