George denies order to push down pound
Wednesday 26 May 1999
Eddie George said the Bank had tried to talk down the pound because of the imbalance it was causing in the economy by depressing export industries. But he dismissed as "conspiracy theory territory" allegations that the Chancellor of the Exchequer, Gordon Brown, had set him an exchange rate target.
Conservative MPs on the Treasury Select Committee accused the Bank of operating monetary policy to achieve convergence with the economies that are signed up to the euro.
They said the Bank's statement earlier this month that it was ready to cut rates unless sterling fell was part of an effort to talk down the pound.
During a heated session, Mr George said: "We are in conspiracy theory territory in a great way. I am not in the business of pleasing the Chancellor."
Mr George insisted that the Bank focused exclusively on hitting the 2.5 per cent inflation target set by the Government when it handed over the power to set rates two years ago.
"I have made it crystal clear that if the Government wishes us to lower the exchange rate for the purposes of entry into the euro, it would have to change our marching orders.
"We could not accept a situation in which we were mandated by law to do one thing and then asked to do another. We would have to make it explicit that that's what we were doing, otherwise we would have to serve two masters," he said.
Asked by Tory MP David Ruffley if the Chancellor had given any indication of when the policy would change, he said: "None whatsoever. We have talked about it, but not at great length because we share the view that instructions would have to be made absolutely explicit."
As anti-Semitic attacks rise, Grant Feller re-evaluates his identity
Kirstie Allsopp has waded into the female fertility debate again
Gillian Anderson lays into gender disparity in Hollywood
- 1 Snoop Dogg and Jared Leto buy a stake in Reddit as A-list invests $50m
- 2 Prince held a Facebook Q&A and this is the only question he answered...
- 3 'F*ck it, I quit': KTVA reporter Charlo Greene quits live on air in spectacular fashion
- 4 35,000 walrus gather on north-west Alaska beach 'for a rest'
- 5 Brad Pitt, on the moment he completely lost his temper with Clint Eastwood's son
Snoop Dogg and Jared Leto buy a stake in Reddit as A-list invests $50m
Prince held a Facebook Q&A and this is the only question he answered...
Brad Pitt, on the moment he completely lost his temper with Clint Eastwood's son
Jennifer Lawrence nude photos leak: More celebrities allegedly targeted as third wave of hacked images released
Cheryl Cole named 'the most dangerous celebrity' on the internet
Exclusive: 'Putin's Russia has been my biggest regret,' says Nato's outgoing Secretary General
Former Tory donor Arron Banks ups his Ukip donation to £1million following William Hague 'nobody' comment
The Osborne Ultimatum: Chancellor’s benefits freeze bombshell will affect ten million households
There’s no excuse for Dave Lee Travis’s behaviour, but we need to keep a sense of proportion
Mark Reckless becomes second Tory MP to defect to Ukip in a month
Should gay sex be illegal? 16% of Britons think so
- < Previous
- Next >
iJobs Money & Business
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...
NEGOTIABLE: Austen Lloyd: TRUST ACCOUNTANT - KENTIf you are a Chartered Accou...
£18000 - £20000 per annum + OTE £30000: SThree: SThree are a global FTSE 250 b...
Highly Competitive Salary: Austen Lloyd: CITY - Law Costs Draftsperson - NICHE...