BoE chief criticises global reaction to crisis

19 October 2011

The Bank of England (BoE) has been forced to implement loose policies when it comes to aiding to the global economic recovery due to the actions of other countries.

That is according to Mervyn King, governor of the institution, who said in a speech delivered at the Institute of Directors in Liverpool yesterday (18 October) that Britain's counterparts around the world need to take more responsibility.

Mr King explained that nations such as China and Japan have a crucial role to play in driving the recovery by boosting the level of demand for imports, but there is currently a distinct lack of balancing between deficit and surplus.

He went on to indicate that this trend has left the UK's central bank - which recently implemented a second round of monetary stimulus - with little choice but to oversee policies without a great deal of direction.

"In the absence of rebalancing, globally and especially in the euro area, we could be facing a recovery that is not merely reluctant but recalcitrant," Mr King warned.

By Asim Shah

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