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

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.