Treasury committee to grill King
MERVYN King, the governor of the Bank of England, will this week appear in front of the Treasury committee to give evidence on the findings of the quarterly Inflation Report in May, when the Bank raised its short-term inflation forecast in the face of stubborn price resilience.
At the time, King said the monetary policy committee had pushed back expectations of hitting its two per cent target until the start of 2011. However, members of the MPC have since indicated that the target is unlikely to be met until the end of next year, citing the VAT hike in the recent emergency Budget as a major contributing factor.
King and fellow MPC members will also give evidence to the select committee on Wednesday on the new arrangements for financial stability.