Interest rates too low for too long, says ex-Bank of England boss Lord Mervyn King

Published On Sep 29, 2024, 12:48 PM

Former Bank of England head Lord Mervyn King criticized central banks for keeping interest rates too low for too long, which he believes contributed to the recent high inflation rates. He noted that while inflation is now under control, changes to fiscal rules may be necessary. King expressed disapproval of national insurance cuts made by the previous government and indicated that he expects a mixture of spending cuts and increased investment in the upcoming government budget. He believes a more accurate measure of fiscal sustainability would be based on the national debt to national income ratio, rather than forecasting over a five-year horizon.