King: UK recovery will be 'arduous' and hints at extra QE

Bank of England governor Mervyn King last night backed calls for limits on boardroom pay, in a speech in which he also said the UK's economic recovery would be "arduous" and hinted at a further round of quantitative easing.

Speaking last night in Brighton, King echoed similar calls from the coalition government, particularly business secretary Vince Cable's recent proposals to crack down on boardroom pay. He said it was a "tragedy" that those who suffered most through the financial crisis had no part to play in it, while others had been excused as they were thought to be "too important to fail", a reference to the bailed-out banks. "The legitimacy of a market economy will inevitably be challenged if rewards go disproportionately to a small elite, especially one which benefited from the support of taxpaye...