Bank of England warns that vote to leave EU risks a credit crunch

Financial policy committee also warns of possible run on sterling and higher interest rates for mortgages in boost for remain side

The Bank of England has given David Cameron a significant boost ahead of the EU referendum by warning that a vote to leave risks causing a run on sterling, a credit crunch and higher interest rates for mortgage payers and businesses.

Threadneedle Street said the closely fought campaign posed the "most significant near term" domestic risk to financial stability, after one of its key policy committees weighed up the consequences of Britain ending its 43-year relationship with the EU.

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