BoE gover­nor urged to re­sign af­ter ad­mit­ting Cameron ‘con­cerns’

The Pak Banker - - Company& -

LONDON: The Gover­nor of the Bank of Eng­land has been urged to re­sign af­ter it emerged he expressed "great con­cerns" about David Cameron and Ge­orge Os­borne to a US diplo­mat.

David Blanch­flower, a for­mer mem­ber of the Bank of Eng­land's mon­e­tary pol­icy com­mit­tee, claimed that Mervyn King's "thirst for power and in­flu­ence" had "clouded his judge­ment one too many times".

The prom­i­nent econ­o­mist chas­tised Mr King for his "un­for­giv­able sin of com­pro­mis­ing the in­de­pen­dence of the Bank of Eng­land" by be­com­ing in­volved in dis­cus­sion on party pol­i­tics.

His com­ments come as leaked doc­u­ments re­vealed that, in the run up to the May Gen­eral Elec­tion, Mr King told the US am­bas­sador to London, Louis Sus­man, that he was wor­ried about the Con­ser­va­tive lead­er­ship's "lack of ex­pe­ri­ence".

Mr King's fears, expressed in a meet­ing on Feb 16, were sent in a cable to the US Sec­re­tary of State, Hil­lary Clin­ton, and dis­closed on Tues­day night by the Wik­iLeaks web­site.

In an ar­ti­cle

on, Mr Blanch­flower said: "Mervyn King is one smart guy and that has al­ways been abun­dantly clear...un­for­tu­nately, it is his thirst for power and in­flu­ence that has clouded his judg­ment one too many times.

"He has now com­mit­ted the un­for­giv­able sin of com­pro­mis­ing the in­de­pen­dence of the Bank of Eng­land. He is ex­pected to be po­lit­i­cally neu­tral but he has shown him­self to be po­lit­i­cally bi­ased and as a re­sult is now in an un­ten­able po­si­tion. King must go."

The dis­clo­sures could test the re­la­tion­ship be­tween Mr King and the Prime Min­is­ter and his Chan­cel­lor. Labour is sure to ex­ploit the em­bar­rass­ment at Prime Min­is­ter's Ques­tions later to­day.

The Gover­nor com­plained that the fu­ture Prime Min­is­ter and Chan­cel­lor re­lied too heav­ily on a nar­row cir­cle of ad­vis­ers. They also "had a ten­dency to think about is­sues only in terms of pol­i­tics, and how they might af­fect Tory elec­tora­bil­ity [sic]". Mr King also said he had held pri­vate meet­ings with the Tory leader and Mr Os­borne be­fore the elec­tion to urge them to draw up a de­tailed plan to re­duce the deficit. In a note to Mrs Clin­ton, Mr Sus­man said: "King expressed great con­cern about Con­ser­va­tive lead­ers' lack of ex­pe­ri­ence. He opined that party leader David Cameron and shadow chan­cel­lor Ge­orge Os­borne have not fully grasped the pres­sures they will face from dif­fer­ent groups when at­tempt­ing to cut spend­ing." Mr King had held pri­vate meet­ings with the two Tory politi­cians to urge them to draw up a de­tailed plan to re­duce the deficit. Other ca­bles dis­closed that Mr King be­lieves the eco­nomic cri­sis among eu­ro­zone coun­tries will ac­cel­er­ate po­lit­i­cal union. The Gover­nor told US di­plo­mats: "Lead­ers in Ger­many and France have recog­nised that al­low­ing mon­e­tary union to hap­pen with­out cor­re­spond­ing po­lit­i­cal co­he­sion was a mis­take and one that needed to be rec­ti­fied." -PB News

IS­LAM­ABAD: Fed­eral Min­is­ter for Rail­ways Ghu­lam Ah­mad Bilour talk­ing to Pun­jab Chief Min­is­ter Mo­ham­mad Shahbaz Sharif dur­ing a meet­ing at his res­i­dence. -App

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