Mervyn King believes the world economy will soon face another economic crash because regulators have failed to reform banking.Read the full story ›
The chairman of the Treasury Select Committee, Andrew Tyrie, has asked the Chancellor to respond to allegations that banks attempted to influence the body charged with regulating them.
Citing today's briefing by the outgoing Bank of England governor, Mr Tyrie said that "pressure had been brought to bear on the PRA, as a result of calls by the banks to Number 10 and Number 11".
"The Governor said that this should not happen," he said, adding that it is "essential that the Chancellor look into this and gives us reassurance".
The outgoing Governor of the Bank of England, Sir Mervyn King, has told ITV News that no major change is needed to the Bank's inflation remit when he is succeeded by Mark Carney.
He also describes the financial pressures placed on households and small businesses during periods of high inflation.
The Bank of England's remit should not change to include anything other than the 2% target of inflation, the outgoing Governor Sir Mervyn King has told ITV News.
In the second of two exclusive interviews with Sir Mervyn, he said: "I'm not sure that there is any call for a major change in the remit."
He added: "What‘s most important is that we commit ourselves again to a very clear target for inflation of 2%."
Recovery is "in sight" for the beleaguered economy, the Governor of the Bank of England has told ITV News in an exclusive interview.Read the full story ›
The outgoing Governor of the Bank of England, Sir Mervyn King has said "there's no point pretending we can go back to the pattern of demand we saw in 2006-2007".
He told ITV News' Economics Editor, Richard Edgar:
We need a big shift of resources towards exports, towards manufacturing and business investment. The consequence of that is we have to accept that private consumption and public spending will not grow as rapidly.
We will get back to the level of unemployment and the path of output, we won't get back to the pattern in which we had a big trade deficit, consumption was high and exports were relatively weak.
That balance has to be changed. Policies are in place to achieve it. We are on track to achieve it. Recovery is in sight.
When asked why a rebalancing of the UK economy is not happening at a faster pace, Governor of the Bank of England, Sir Mervyn King told ITV News:
It's because we're in a process that will take a number of years to move to a position with lower spending on consumption and public spending and higher exports or producing things as a substitute for imports. That will require more business investment.
Two things are holding us back at the present.
One is the extraordinary degree of weakness in the euro area. It's in recession, it's our single biggest trading partner. The economies in or close to the area really affect about half of our economy.
The second factor is "the enormous uncertainty generated by what is happening in the euro area is encouraging firms to hold back on investment", he added.
In an interview with ITV News' Economics Editor Richard Edgar, Bank of England Governor, Sir Mervyn King, said a recovery for the UK economy was "in sight".
During a two day visit to Birmingham, Governor of the Bank of England, Sir Mervyn King, spoke to ITV News about lessons he had learnt from talking to company bosses and factory workers.
What I've learnt today is that demand for UK manufactured exports is pretty buoyant, and that the new position we're in, the UK has to rebalance its economy.
We have to rely more on exports that we did, this is going to correct our trade deficit and gradually lead us back to full employment.