Is it time for Mervyn King to go?

After admitting the MPC has lost control of inflation, Alan Wilde, head of fixed income and currency at Barings, asks if the Bank of England governor is losing his credibility.

The extraordinary performance by the governor of the Bank of England at the latest inflation report is the signal gilt investors have been dreading for some time. Finally, Mervyn King admitted the MPC have lost control of inflation and there is not a thing they are prepared to do about it. Admittedly, the ‘one club’ toolkit does not offer many options but any central bank has to guard its own credibility first and foremost and not be seen to be another arm of government policy. Increasingly it looks like King is playing Mr Nice Guy to chancellor Osborne’s Mr Nasty. King should take h...