Live updates


Tyrie calls for Chancellor to look at bank lobbying claims

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".

Read: Goodbye and good luck, you'll certainly need it - Sir Mervyn King's last appearance before MPs.

Sir Mervyn King: No need to change Bank's remit

Sir Mervyn King has said he has seen "signs of a recovery" for the economy. Credit: ITV News

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%."


King: 'Big trade deficit' pattern to be avoided

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.

  1. Richard Edgar

King spoke to PM and Chancellor about UK strategy

We're only a week away from the Budget and traditionally the Governor doesn't ever comment on Government policy but he revealed that had spoken in the past few days to the Chancellor and Prime Minister.

I asked if he had once again raised supply side measures, things that the Government can do to make the economy more competitive.

I've have had conversations with the Chancellor and Prime Minister about the strategy and we talked privately about various things that can be done. It is not my job, and it would be quite wrong of me to speak in public about things that is their responsibility.

But I am confident that there are things the UK could do and I'm very confident the Government understands that.

I think that ratchets up the pressure on the Chancellor a little bit.

Back here in the West Midlands, the main message is that business is tough but there is growth and it's abroad.

  1. Richard Edgar

Regional visits give BoE Governor grounds for optimism

The Governor of the Bank of England is only a few months away from retiring but he's showing no loss of appetite for these regional visits, trips to companies like this one in the Midlands, where he can find out what is going on in the real economy on the ground.

He's been talking to two manufacturers both of which export, both of which are doing rather well and that's given him some grounds for optimism.

Load more updates