Fears over King's appointment
Thursday 03 February 2005
Documents released under the Freedom of Information Act revealed that Mr King beat off five other candidates to win Gordon Brown's approval for the top job at the Bank. But the Treasury refused to publish the names of the unsuccessful candidates and declined to make public its reasons for keeping them secret.
In a briefing paper entitled "New Governor - Points to Watch", civil servants highlighted sensitive issues over Mr King's selection such as his pay and the secrecy of the appointment process.
On interest rates they said there might be suspicions that the appointment of such a well-known inflation "hawk" meant that interest rates were set to go up. The suggested reply said it was "wrong to conclude that Mr King's appointment has any message for short-term interest rate decisions".
Since he took the reins at the Bank in June 2003, the Monetary Policy Committee has cut rates once and then raised them five times. The note warns that Mr King "does not favour early entry" into the euro and asks whether his promotion must mean the outcome of the five economic tests would be negative.
Mr King was appointed in April 2003, two months before the Chancellor announced the UK had failed all but one of the five tests for euro membership.
The note also confirms that the Treasury had appointed Mr King before Sir Edward George's retirement to "limit unhelpful speculation".
The Treasury had been accused of dragging its feet for so long over the appointment of Sir Andrew Large as a deputy governor that the MPC was left with eight out of the normal nine members for one month in 2002.
- 1 Jeremy Clarkson 'sees no problem' with his racist language on Top Gear, says BBC
- 2 'Alien thigh bone' on Mars: Excitement from alien hunters at 'evidence' of extraterrestrial life
- 3 Richard Dawkins on babies with Down Syndrome: 'Abort it and try again – it would be immoral to bring it into the world'
- 4 London restaurant 34 creates champagne glass modelled on Kate Moss’ left breast
- 5 ALS ice bucket challenge co-founder Corey Griffin drowns, aged 27
Richard Dawkins on babies with Down Syndrome: 'Abort it and try again – it would be immoral to bring it into the world'
Scottish independence: English people overwhelmingly want Scotland to stay in the UK
Isis threat: Cameron wants an alliance with Iran
Michael Brown shooting: Chaos erupts on the streets of Ferguson after autopsy shows teenager was shot six times – twice in the head
Bin bag full of cats' heads discovered near Manchester's Curry Mile
Disgusting, frustrating, but intriguing: how the country really feels about its politicians
iJobs Money & Business
£30000 - £50000 per annum: Harrington Starr: Junior Quant Analyst - C++, Boost...
£30000 - £50000 per annum: Harrington Starr: Junior Quant Analyst (Machine Lea...
£30000 - £40000 per annum + benefits+bonus+package: Harrington Starr: C#.NET ...
£20000 - £30000 per annum + benefits+bonus+package: Harrington Starr: Junior D...