Boris Johnson return would alarm markets, former Bank of England chief warns

‘Concern’ about fresh instability predicted – as borrowing costs rise after ex-PM installed as race favourite

The return of Boris Johnson would worry financial markets, a former Bank of England deputy governor is warning – even as borrowing costs begin to rise as the prospect looms.

Charlie Bean predicted “concern” that the extraordinary re-election of the former prime minister – tipped to have the backing of more than 100 Tory MPs – would bring fresh disarray to Downing Street.

Asked if it might “spook” the markets, he said: “There might be some concern about whether this was going to be a stable government again, given the instability that we had at the end of Johnson’s term as prime minister.