King: BoE inquiry would be pointless

16 March 2012

An investigation into the practices of the Bank of England (BoE) during the global economic downturn would be a pointless exercise.

That is the view of Mervyn King, governor of the institution, who has insisted the BoE acted responsibly throughout the recession and fulfilled its role in terms of effectively battling against inflation.

During an interview with The Times, Mr King insisted that calls from some politicians for government scrutiny on the body are wide of the mark, as the country's financial difficulties were caused by solvency issues, not a lack of liquidity.

Indeed, the official noted that if an investigation is launched, "it has to be an inquiry into everything, not just the BoE", meaning ministers and Treasury members would all be involved.

He went on to say that while he has no "objection" to such a process being launched, it is important that the BoE is not expected to "inquire into itself".

By Asim Shah

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