Bank's Governor to face grilling over QE decision
Sir Mervyn King will be called to account before Parliament today for the decision of the Monetary Policy Committee (MPC) to inject £75bn into the British economy at a time when inflation is running more than double the Bank of England's target.
The Bank's Governor will give evidence to the Treasury Select Committee on the Bank's decision to restart its programme of Quantitative Easing.
Andrew Sentance, who left the MPC in May, argues that the Bank is making a serious error in extending its programme of UK government bond purchases and suggests the committee should force the Governor to explain the Bank's poor record in forecasting the rate of inflation over recent years.
Mr Sentance said: "The first question I would ask the Governor is: When inflation has been persistently over target and underestimated why are you so you so confident that inflation is coming down to below target?" He also said that Sir Mervyn should be grilled on what he calls a "bias" in the MPC's stance on inflation.
He said: "You were incredibly resistant when I pointed out the upside risk to inflation, but at the slightest twitch of downside risk you changed policy." Mr Sentance argues Sir Mervyn bears a personal responsibility for the QE decision. "He [King] is a very influential figure on the MPC. He would have played a very significant role in persuading others."
- 1 Expert urges cat lovers to own just one animal each
- 2 Car tax disc changes: Two days to go - and they affect you much more than just not displaying a piece of paper
- 3 The Simpsons death: Creator Al Jean would 'kill himself' before character like Homer or Lisa
- 4 British man raped while urinating in bushes at Oktoberfest beer festival in Germany
- 5 A teacher speaks out: 'I'm effectively being forced out of a career that I wanted to love'
Expert urges cat lovers to own just one animal each
Five-year-old Iris Grace is raising awareness of autism through her extraordinary paintings
Isis an hour away from Baghdad - with no sign of Iraq army being able to make a successful counter-attack
Car tax disc changes: Two days to go - and they affect you much more than just not displaying a piece of paper
British man raped while urinating in bushes at Oktoberfest beer festival in Germany
Isis, we are told, is a 'clear and dangerous threat to our way of life'. I’m sorry, but I just don’t buy it
Exclusive: 'Putin's Russia has been my biggest regret,' says Nato's outgoing Secretary General
'Women, walk wherever you want' posters taken down in Stamford Hill following 'unacceptable' signs separating men and women
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
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...
£300 - £330 per day: Ashdown Group: SQL Developer (Stored Procedures) Watford...