MPC

Carney cure

Outgoing Bank of England Governor Sir Mervyn King has urged successor Mark Carney not to spell out how long interest rates will remain low when he takes charge.

Mervyn King, the outgoing governor of the Bank of England, has warned central banks risk becoming more politicized as a result of their efforts to tackle the banking crisis and subsequent recessions.

Analysts have raised concerns about the government's debt plans for 2013-14 after the Budget revealed a sharp rise in the amount of short-dated debt due to be issued.

René Defossez, fixed income strategist at Natixis, assesses the next steps for the UK economy.

Sterling fell back this morning ahead of the Bank of England's Monetary Policy Committee (MPC) announcement as traders speculated whether the Bank will restart the printing presses to shore up the UK's economic recover.

Sir Mervyn King voted to increase quantitative easing by a further £25bn at February's Monetary Policy Committee meeting, latest minutes reveal.

The Bank of England's Monetary Policy Committee will tolerate missing the inflation target for the next two years in order to support the UK recovery, said Bank governor Mervyn King.

The Bank of England's Monetary Policy Committee (MPC) has said inflation may remain above the 2% target for the next two years, in part due to sterling weakness.

The Monetary Policy Committee (MPC) voted unanimously to hold the bank rate at 0.5% at the last meeting, while all but one member voted to maintain the QE programme at £375bn.