Bank board uneasy over King deficit comments

first_img John Dunne whatsapp The Bank of England’s supervisory board said that it was uncomfortable with the way Governor Mervyn King’s comments on fiscal policy had been used for political means and that the bank should have “shouted louder” to warn of an impending financial crisis.The chairman of the Bank’s board of directors expressed unease that King had made comments on fiscal policy that were open to a partisan political interpretation.David Lees, who chairs the Bank’s Court of Directors and oversees its Monetary Policy Committee, was asked by a parliamentary committee about a speech King gave in January in which he endorsed the government’s fiscal course.“I’m not terribly comfortable with that because that’s moving away from the general to the particular,” said Court chairman David Lees, who otherwise said he was happy with King’s remarks on the need for fiscal tightening.But Brendan Barber, who heads the umbrella trade union body as well as sitting on the Bank’s Court, put the blame on the coalition for misrepresenting King’s remarks.“They sought to present his remarks as an endorsement of (their) strategy. I think that was very unfortunate and did risk getting the bank drawn in an unhelpful way in what is a very political debate,” Barber said. “I didn’t see (King’s remarks) as a significant variation from his earlier comments.”The Labour Party has occasionally criticised King for compromising the Bank’s independence by apparently endorsing the coalition’s budget plans. King says that fiscal consolidation is necessary — a view shared by all major UK parties – but that he is neutral on whether taxes are raised or spending cut to reduce the budget deficit.Legislators criticised the Court of Directors for not taking a greater interest in the risk of the Bank getting politicised in the debate about how to reduce the budget deficit.Asked what action the Court could take if it felt Governor King had compromised the Bank’s independence, Lees said he would have a “very serious conversation” with King but stopped short of saying whether he would publicly call for King to go.Another Court member said the Bank could have publicised risks to the banking sector more vigorously in the run-up to the financial crisis, although it may not have made any difference.“In terms of what it could have done in the run-up to the crisis, it may have been able to have shouted louder. Whether people would have listened is questionable,” said Roger Carr, a member of the Bank’s Court of Directors since June 2007. by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBetterBe20 Stunning Female AthletesBetterBePeople TodayNewborn’s Strange Behavior Troubles Mom, 40 Years Later She Finds The Reason Behind ItPeople Todayautooverload.comDeclassified Vietnam War Photos The Public Wasn’t Meant To Seeautooverload.comElite HeraldExperts Discover Girl Born From Two Different SpeciesElite HeraldDrivepedia20 Of The Most Underrated Vintage CarsDrivepedia Tuesday 15 March 2011 11:37 am Share More From Our Partners Native American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgKiller drone ‘hunted down a human target’ without being told tonypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.org980-foot skyscraper sways in China, prompting panic and evacuationsnypost.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comcenter_img whatsapp Bank board uneasy over King deficit comments Show Comments ▼ Tags: NULLlast_img

Leave a Reply

Your email address will not be published. Required fields are marked *