Wednesday, September 19, 2007
Mervyn's lowest moment
Posted by David Smith at 05:30 PM
Category: Thoughts and responses

If Mervyn King thought the headlines were bad a few months ago when he had to write an open letter to the chancellor explaining why inflation was more than a percentage point above target, they were as nothing compared with what faces him tomorrow morning following the Bank's u-turn in the money markets, and its decision to provide three-month liquidity against the security of mortgage collateral. It's all gone wrong for him - and he has to face a grilling from the Commons Treasury committee.