Mervyn king

Ed Miliband has had three launches in three months – but, much as I hate to admit it, things are getting better for him. His party are now consistently ahead in the polls, so in my News of the World column today I look at what’s going right. Here are my main points: 1) Cameron’s embrace has, alas, proved toxic for the Lib Dems. I have been impressed by Nick Clegg since he entered government. I’d like to see him rewarded for the tough decisions he took, and in more ways than being named ‘politician of the year’ by the Threadneedle/Spectator awards. But it just isn’t happening. The ‘merger’ model

How much bigger does Britain’s inflation have to become before Mervyn King realises it’s a problem? The VAT rise should have lifted prices by 2.1 percent – but shopkeepers over Britain have been applying far larger rises. Why? Because one of the most important factors in economics – expectation of inflation – is back. People are bracing themselves for another year of rising heat, transport and staff costs – so retailers hike up prices in anticipation, and a vicious spiral of inflation begins. The Retail Price Index was up 4.8 percent last November, and Consumer Price Index 3.3 percent. The price of this failure of monetary policy is paid by

Trust Bob Crow to turn down the charm. Explaining why he was boycotting Mervyn King’s address to the TUC today, the RMT union boss managed to liken the Governor of the Bank of England to both the “devil” and the “Sheriff of Nottingham”. Unsurprising, perhaps – but it’s yet another reminder of why, for the Labour leadership contenders, marching in lockstep with the unions may not be such a good idea. To Harriet Harman, a Labour Party bound to Crow & Co. might be a “progressive coalition”. But to the rest of the country, it will probably look slightly left of sane. Only David Miliband, to his credit, seems to

Mervyn King’s evidence to the Treasury select committee has Westminster’s tired tongues wagging this afternoon. King re-iterated his long-held position that market confidence will imperil long-term recovery unless the deficit was confronted immediately. Nick Clegg has said that a personal conversation with King changed his mind on cutting the deficit early. Paul Waugh, Jeremy Warner and James Macintyre have varying takes on the Governor’s remarks and their bearing on the coalition’s formation. I’d just observe that King may have been Cameron and Clegg’s unwitting matchmaker. But equally, no party was honest about cuts during the election. It was the great unmentionable, which would suggest that cutting had to come sooner

As Allister Heath notes in City AM this morning, Mervyn King has had a good war. Well, not so much a good war as a profitable peace. King contributed to the domestic crisis by sustaining very low interest rates whilst ignoring asset prices. Brown may have forced the Governor’s hand, but King was groggily supine until a sovereign debt crisis threatened. George Osborne is dismantling Gordon Brown’s regulatory imperium. King is the major beneficiary as the FSA is subsumed by the Bank of England. How will exercise that power? Obviously, time will tell; but monetary tightening will moderate excess (and spruce up banks’ balance sheets) in the short-term. Heath reports: