King hints at more QE ahead of Spending Review

Scott Sinclair
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Bank of England governor Mervyn King last night warned of an unpleasant, "sober" decade ahead and hinted at further QE ahead of today's government Spending Review.

Speaking to an audience in the West Midlands, King said the next decade would be one of "savings, orderly budgets, and equitable re-balancing" and would "not be nice". He also warned countries to guard against trade protectionism to avoid consequences similar to the collapse of the global economy in the 1930s. King said the re-balancing of the economy would take some time. "The next decade will not be nice," he said. "History suggests that after a financial crisis the hangover lasts for a while." He said it may be some time before inflation returns to its 2% target and raised ho...

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