Global markets have “jumped the gun” in betting that interest rates will go back to normal levels anytime soon, the outgoing Bank of England governor, Mervyn King, has said in reaction to the widespread sell-off following Federal Reserve comments last week.
Speaking at his last hearing with the all-party Treasury committee, King raised concerns over bank lobbying and bemoaned the “disaster” of austerity in some parts of the eurozone. He advised his successor, the Canadian Mark Carney, to be true to himself.
Asked about the global shares rout, King said the Fed’s chairman, Ben Bernanke, had been very clear when he talked about tapering the stimulus to the US economy. Bernanke “certainly wasn’t announcing the end of QE”, King said, in reference to the bond buying programme known as quantitative easing.
via The Guardian
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