BoE Governor Says More Needed to Restore Confidence in Banks

Bank of England Governor Sir Mervyn King has called for further action to boost the UK’s ailing economy, in a speech in Belfast.

He said much has been done by the government and the Bank, but more was needed, particularly to restore confidence in banks.

Sir Mervyn said there were signs a “gentle recovery” was under way.

He also defended the Bank’s inflation targeting but said to review it given recent events would be sensible.

Sir Mervyn, who steps down from his post in June, said the Bank had allowed inflation to remain above the target 2% rate, as raising interest rates to tackle price rises would have created a deeper recession and pushed up unemployment.

But he said the Bank’s current remit did not specify how it should “strike a balance between growth and inflation in the short run”.

via BBC

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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
Alfonso Esparza

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