Mervyn King, governor of the BoE warned that Britain may face another financial crisis. King expressed his concerns over the banking system.
He gave a rather rare interview to the Telegraph. Here are some quotes:
“We’ve not yet solved the ‘too big to fail’ or, as I prefer to call it, the ‘too important to fail’ problem.
“The concept of being too important to fail should have no place in a market economy.”
When asked whether there could be a repeat of the financial crisis, Mr King says: “Yes. The problem is still there. The search for yield goes on. Imbalances are beginning to grow again.”
This interview, that was published over the weekend, may send the pound to a weaker start. It joins the lower-than-expected Services PMI, that shows that the economy is still struggling.
Mervyn King and the MPC will decide on the interest rate on Thursday. For more events and technical analysis, see the GBP/USD Forecast.
Get the 5 most predictable currency pairs