"The scale and immediacy of the deterioration in the Eurozone could not have been foreseen before August." The Governor of the Bank of England explains that the worsening eurozone crisis prompted the Monetary Policy Committee to introduce a second round of quantatitive easing (QE2).
So says Mervyn King, the governor of the Bank of England, in evidence to the Treasury select committee this morning.
Well, had the governor been reading the Birmingham Post or checked into birminghampost.net in spring and early summer this year he would have been better informed and alerted.
With all due modesty, I did write here and in the print edition in March this year:
"What I will confidently predict is that there will be another European Banking crisis again, probably this year.
http://blogs.birminghampost.net/business/2011/10/mervyn-king-at-the-treasury-se.html
Round-up - TSC to FSA: Second crisis will be your fault
The Treasury Select Committee (TSC) has issued a stark warning to the Bank of England and Financial Services Authority that they would be held accountable should mistakes made now "aggravate" a second financial crisis.
http://www.ifaonline.co.uk/ifaonline/news/2119378/round-tsc-fsa-crisis-fault
http://www.telegraph.co.uk/finance/financialcrisis/8848141/Mervyn-King-defends-QE2-decision.html
BOE: QE May Not Boost Bank Lending
LONDON—Bank of England Gov. Mervyn King said Tuesday there is no guarantee the central bank's latest round of stimulus will boost lending to businesses, as figures showed borrowing by U.K. firms remains subdued.
In a tense appearance before the U.K parliament's Treasury Select Committee, Mr. King told lawmakers that banks remain under considerable pressure from investors to shrink their loan books and that the extra £75 billion ($119.97 billion) of BOE bond purchases may only prevent banks from reducing lending even further.
"I can't guarantee that it means that bank lending will rise. But I do believe that it won't fall as far as it might otherwise have done," King said.
http://tinyurl.com/3sy7otj
Bank of England makes plea for incentives
http://www.theglobeandmail.com/report-on-business/small-business/sb-tools/small-business-briefing/bank-of-england-makes-plea-for-incentives/article2212678/
Eurozone's £1trillion rescue plan is only buying time, Bank of England Governor tells MPs
Sir Mervyn defends British QE in stormy exchange with MPs
Concern that the eurozone plan won't be enough
Proposal includes writing off some Greek debt
The Governor of the Bank of England today warned the eurozone's £1 trillion rescue package has only bought time for two years.
Sir Mervyn King gave his backing to the plan but told the Commons Treasury committee it won't solve underlying problems.
In a stormy meeting with MPs, he said: 'I don't think the scale and the immediacy of how the problem deteriorated in the euro area was obvious at the beginning of the summer.
http://www.dailymail.co.uk/news/article-2053240/Eurozones-1-trillion-bailout-buying-time-Bank-England-Governor-tells-MPs.html
Wednesday, 26 October 2011
Posts
