Osborne to King: Bank regulators must focus on short-term growth

George Osborne has said the Bank of England's new Financial Policy Committee must provide "consistent messages" so it does not risk jeopardising the economic recovery.

In a letter to BoE governor Sir Mervyn King, the Chancellor acknowledged the FPC's main role of helping maintain financial stability, but also drew attention to its secondary responsibility of supporting government economic policy. Osborne said he recognised the tension between minimising risk in the financial system and supporting the government's aim to boost economic growth. But he stressed it was "particularly important" the committee gives "due weight to the impact of its actions on the near-term economic recovery". The letter, which outlines the FPC's remit, said the committe...