BoE's King warns of growing currency competition

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The head of the Bank of England warned on Monday that too many countries were trying to weaken their currencies to offset the impact of the slow global economy and the trend could grow next year. (Reuters) The head of the Bank of England warned on Monday that too many countries were trying to weaken their currencies to offset the impact of the slow global economy and the trend could grow next year. (Reuters)
Summary'Too many countries were trying to weaken their currencies to offset the impact of economy'

so-called fiscal cliff of automatic tax hikes and spending cuts due to come into force in January.

It "will find a way, if not avoiding going over the cliff, then hanging on by the finger tips" on the other side, he said.

Some political analysts predict the Republicans and Democrats will fail to agree on raising taxes and cutting

spending before Jan. 1 but might do so soon afterwards.

THE GOVERNOR'S WIFE

Britain recorded economic growth of 1.0 percent in the third quarter, marking an end to nine months of recession - its second since the 2008-09 financial crisis. But most of the rebound was driven by a technical bounce due to the London Olympics and extra public holidays in the preceding quarter.

The euro zone debt crisis, high inflation and fiscal austerity have weighed heavily on the economic recovery.

The address may be one of King's last in the United States. Mark Carney, currently the head of Canada's central bank, is set to be the first non-Briton to lead the BoE next summer. King recalled the day his wife saw the surprising news that Carney was named to the post. "She said, 'You know Mervyn, they'll miss you, or six months down the road they'll miss you,'" King told the audience. "And then she looked at the TV screen and said: 'He's very young, he's very good looking, he's immensely charming and he's very charismatic.' I think he'll do a great job and they won't miss me at all."

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