Mervyn King turned down a pay rise of nearly £100,000 at the start of this month when he began his second five-year term as governor of the Bank of England.

Instead of accepting pay of between £375,000 and £400,000 as recommended by an external review of senior Bank salaries, a third higher than his 2007-08 remuneration, he opted to take an increase of just 2.5 per cent. This is the rise the Bank usually offers its senior staff every year. He is now locked into that annual increase for the rest of his five-year term.