June 17, 2009

The Governor of the Bank of England has called for the Bank to gain more powers so it can carry out its new role of promoting financial stability.

[efoods]In a major speech in London, Mr King compared the bank to a church which sees its congregation at key events but is ignored in the interim.

He said how the central bank would apply its new powers was “not clear”.

The major lesson of the finance crisis was that authorities lacked the means to take effective action, he added.

Mr King, delivering the annual Mansion House speech, said the bank could not continue acting “like a church” whose congregation “ignores its sermons”, but said it was not entirely clear how the Bank would be able to discharge its new statutory responsibility.

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