King: More QE could be on cards

Bank of England governor Mervyn King has not ruled out another round of quantitative easing and has reiterated his belief the UK recovery will be choppy.

Speaking at a Treasury Select Committee hearing on financial regulation, King said if economic growth continues to be sluggish the Monetary Policy Committee (MPC) will consider an additional round of quantitative easing beyond the £200bn already committed. "If we thought sluggish growth was creating the risk inflation would fall below target then we would contemplate further asset purchases," he said. Last month, the Office for National Statistics said GDP contracted by a worse than expected 0.6% in the final quarter of 2010. Although King cautions against attaching too much import...