Breakingviews

Who’s in charge? I am, says Bank Governor

November 12, 2009

British opposition leader David Cameron wants to scrap Quantitative Easing as soon as possible, but on Wednesday the Governor of the Bank of England signalled pretty clearly that it’s none of his business. If a Conservative government wants to control what the Governor called “the decision about asset purchases” then it will have to change the law.

Inflation’s gonna be OK, says Merv

November 11, 2009

Mervyn King, Governor of the Bank of England, sees a long, hard road back to the path we thought we were on before the financial crisis broke. Just how long is shown by  Chart 2 in Wednesday’s Quarterly Inflation Report. The Bank’s Monetary Policy Committee does not expect Britain’s GDP to return to its peak, 2007, level until 2011, and there’s an outside chance that even in 2012, the country’s output will be no more than it was in 2006.