[mserve id=”Central_Bank_BOE_King.jpg” align=”left” width=”200″ caption=”BoE Governor King” alt=”Central Bank of England Governor Mervyn King” title=”Bank of England Governor King”]
Bank of England Governor Mervyn King said officials are prepared to do Ã¢â‚¬Å“whatever seems appropriateÃ¢â‚¬Â to prevent a relapse in the U.K.Ã¢â‚¬â„¢s economic recovery.
Ã¢â‚¬Å“Our central view is still that the most likely set of outcomes are along paths which involve a gradual recovery,Ã¢â‚¬Â King said in testimony to ParliamentÃ¢â‚¬â„¢s Treasury Committee today. Ã¢â‚¬Å“But anyone who has lived through the last two years will surely know there must be enormous uncertainty on either side of that.Ã¢â‚¬Â
The U.K. economy is entering a Ã¢â‚¬Å“very grave stageÃ¢â‚¬Â and the Bank of England should expand its 200 billion-pound ($309 billion) bond-buying plan to fight the risk of a relapse, former Treasury adviser Roger Bootle said yesterday. Officials paused the program this month to gauge the strength of the recovery.
Ã¢â‚¬Å“Monetary policy can either be more expansionary or more contractionary as the situation demands,Ã¢â‚¬Â King said. Ã¢â‚¬Å“We stand ready to do whatever seems appropriate.Ã¢â‚¬Â
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