A top Bank of England official has said Michael Gove's criticism of experts during the EU referendum campaign was "one of the most disturbing remarks" she has ever heard and warned that fake news and a collapse in trust of the media could make it difficult for the UK's central bank to do its job.
Minouche Shafik, a deputy governor responsible for ensuring market stability, told BuzzFeed News she had been shocked by Gove's declaration during last summer's contest that the British public "have had enough of experts", and said it was time to stand up for expertise.
"We need experts in our life – if you’ve got a serious illness you’re not going to look for the least expert doctor," she said in her final interview before she steps down to run the London School of Economics.
Last night on BBC Newsnight Gove said his comments were the result of a "high-intensity" TV interview and that he was not making a "blanket rejection" of ", evidence [and] rigour".
Shafik, who sits on the Bank of England's monetary policy committee, also said there were concerns at the very top level of the Bank that the spread of fake news and disinformation was a serious concern.
"We derive our legitimacy and authority to implement independent monetary policy on the basis of public consent, developed on the basis that we are experts doing things in the public interest," she said. "If people don’t believe we’re doing something in the public interest then that’s a major problem, not just for the Bank of England.
"It’s dangerous when decisions are made at a personal and political level without the best possible information."
The Bank of England does not act like a traditional high street lender but is an independent organisation responsible for ensuring financial stability and regulating the financial system, while also setting interest rates.
Shafiq insisted the public still tended to believe the institution was acting in its best interests but said the Bank is very concerned about how to communicate its decisions, especially when partisan newspapers put political spin on its highly technical reports.
"Citizens need to be given tools to be discerning consumers of expertise," she said, suggesting the media should help educate the public on which sources of information to believe, and warning that the financial implosion of the mainstream media industry could impact financial markets in the future.
"There are a couple of examples which have not been widely publicised where fake political news has had market consequences," she said. "What’s happened so far is that corrections have been issued very quickly, mainly because when a particular company or bank is affected they have a particular incentive to correct it. If that didn’t happen, you could see some stability risks."
Asked whether she felt concerned by US president Donald Trump's apparent disdain for experts, she answered diplomatically: "I’ve worked in government and in Whitehall. And I’ve seen politicians work in many different ways. And the ones who have been most successful have been the ones who get the best experts and listen to multiple views from different sources."
During the EU referendum, the Bank was criticised by some anti-EU campaigners for predicting an immediate post-referendum economic slump, and the Bank's own chief economist has admitted errors were made in the run-up to the vote.
Shafik, one of four deputies who work under governor Mark Carney, defended the Bank's forecasting model, including a gloomy prediction made after the vote which wrongly suggested the UK was heading for an imminent recession.
"Based on the data we had it’s not surprising we had a forecast that was worrying," she said. "It’s turned out the economy is performing better than we expected, which is great news, as consumers have continued to spend. When the new data came in we updated our forecast."
Last summer pro-EU campaigners also repeatedly warned that Brexit could lead to a house price crash – something that was instead seen as a positive by some young people struggling to afford a place to live.
Shafik, whose role at the Bank included overseeing the stability of the financial markets, said she recognised that this argument was enticing but said it would have wider consequences.
“I think what would be really good for young people is if we built more houses," she said. "That is the better solution to the current issue – there needs to be more supply. A house price crash has negative financial stability consequences for the financial system.
"I’m at the Bank of England, so I can’t say I want a house price crash."