King Says BOE Will Risk Unpopularity to Stop Future Crises

Bank of England Governor Mervyn King said central bank officials are prepared to take unpopular measures to prevent banking excesses from undermining financial stability and economic growth.

“Our role will be to take away the punch bowl just as the next party is getting going,” King said in a radio address late yesterday in London. “That won’t make us popular among bankers, politicians and even at times some of you, and it’s not supposed to. But it will, I hope, reflect the trust and confidence that the citizens of this country can place in the Old Lady of Threadneedle Street,” a nickname for the central bank.