'Not too dissimilar': Bank of England deputy likens UK economy to that of Italy or Greece
Sir Charlie Bean was deputy governor for monetary policy at the Bank of England from 2008 to 2014.
Andrew Neil takes aim at Liz Truss with opening monologue
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.
READ MORE: Ann Widdecombe blasts lack of true Tories in Truss Government
Governor of the Bank of England Andrew Bailey said in Washington on Saturday that interest rates may be pushed up even more due to "inflationary pressures".
Sir Charlie attempted to clarify his comments, saying it did not mean that "interest rates are going to have to rise more than we thought last week".
Instead he said Mr Bailey was "reflecting the fact that pressures on interest rates have risen in the past couple months".
DON'T MISS:
Australians return home after evaluations despite flood warnings [LATEST]
Kyiv hit by three explosions as Russia continues bombing campaign [BREAKING]
Crude up as strength of US dollar eases [SPOTLIGHT]
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.