Published by Mark Smith-HalvorsenBank of England governor Mervyn King has reportedly warned that tough austerity measures will be necessary if Britain is to avoid a financial meltdown.The governor reportedly made the comments during a private meeting with US economics consultant David Hale, who then relayed his statement during an interview with Australian broadcaster ABC Television.The BBC has contacted the Bank for confirmation of his remarks without success, although it was confirmed that the two men had met privately last week.Mr Hale quoted Mr King as saying that the public cuts would be of a magnitude that whoever wins the next general election would be kept "out of power for a whole generation" due to the unpopularity of the measures.Foreign exchange analysts at BNP Paribas yesterday gave a boost to the Cameron camp after it warned that his programme of cuts would be necessary to stave off a downgrading of the UK's sovereign AAA debt rating.For more information on foreign exchange treasury services and risk management, visit our Corporate FX site