King Says BOE Will Risk Unpopularity to Prevent Crises
Bank of England Governor Mervyn King said central bank officials are prepared to take unpopular measures to prevent banking excesses from undermining financial stability and economic growth, Bloomberg reported. “Our role will be to take away the punch bowl just as the next party is getting going,” King said in a BBC Radio address Wednesday in London. “That won’t make us popular among bankers, politicians and even at times some of you, and it’s not supposed to. But it will, I hope, reflect the trust and confidence that the citizens of this country can place in the Old Lady of Threadneedle Street,” a nickname for the central bank. As officials prepare for a decision next week on whether to extend their bond-buying program to lift the economy from its first double-dip recession since 1975, King said the economy isn’t yet “back to health” and needs the support of low interest rates. The governor, who will retire in June 2013, spoke days before the central bank marks 15 years of independence from government in setting monetary policy. Read more.