George Osborne has told the Financial Policy Committee (FPC) to prioritise short-term economic growth while acknowledging the difficulty in managing its dual objectives.
In a letter to the Bank of England's governor Sir Mervyn King said he recognised the tension between minimising risk in the financial system and supporting the government's aim to boost economic growth. But stressed it was "particularly important" the committee gives "due weight to the impact of its actions on the near-term economic recovery". The letter, which outlined the remit and recommendations for the FPC, said the committee should to "take stock of the current state of the UK financial system and to look ahead at potential longer term risks and imbalances". Osborne added the...
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