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Thursday, March 27, 2008

Behind The Curve

I am not the only person who believes that the Bank of England and Mervyn King have been slow to realise the dangers of the ongoing credit crunch.

Former Bank of England policy maker DeAnne Julius has weighed in. She is quoted on Bloomberg as saying:

"They're behind the curve.

If I were still on the committee I'd be voting for a half-a-point cut
."

She went on to say that King had not communicated enough with financial markets as well as banking regulators and the Treasury, as the crisis developed last August.

She blamed the Bank of England for the run on Northern Rock Plc, which the government was forced to nationalise last month.

The question is, will Mervyn King listen?

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