'No major currency problem for Scotland'
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No major currency problem for Scotland, says Mervyn King

The former governor of the Bank of England, Lord Mervyn King, says "Scotland certainly could be an independent country" and he does not see any major problems in terms of its currency.

Speaking to BBC Newsnight, Lord King said the cost of borrowing for Scotland would go up if it decided to run a large budget deficit.

On Brexit, he said politicians "seem obsessed" with the issue - and other economic challenges risk not getting the attention they deserve.