King Says BOE Will Do ‘Whatever Seems Appropriate’ for Economy

[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 “whatever seems appropriate” to prevent a relapse in the U.K.’s economic recovery.

“Our central view is still that the most likely set of outcomes are along paths which involve a gradual recovery,” King said in testimony to Parliament’s Treasury Committee today. “But anyone who has lived through the last two years will surely know there must be enormous uncertainty on either side of that.”

The U.K. economy is entering a “very grave stage” 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.

“Monetary policy can either be more expansionary or more contractionary as the situation demands,” King said. “We stand ready to do whatever seems appropriate.”

Bloomberg

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza