Chancellor George Osborne has backed Mervyn King, the governor of the Bank of England, despite failures to meet the 2% inflation rate on several occasions.
Osborne voiced his approval for the governor and the central bank’s monetary policy committee before the Treasury Select Committee.
The chancellor says he has complete confidence in King and the committee to meet its mandate.
The chancellor says the independent members of the central bank have come to positions similar to those of the government’s Office for Budget Responsibility.
He says: “[You] always have to protect and preserve the independence of central banks and your central bank governor, it’s a key feature of monetary policy independence.”
To receive more relevant articles like this one, why not sign up to our briefings and breaking alerts by clicking here.