The Bank of England governor said last month that Britain lacked “a credible plan” for cutting its £175bn deficit. But if he was hoping that Alistair Darling would announce a big new fiscal squeeze next week, he will be disappointed.
The chancellor has discarded the criticisms of Mervyn King, the Conservatives and the credit ratings agencies that he is not moving quickly enough to cut borrowing; his pre-Budget report will argue that the priority now is getting the economy moving. It may not be enough to satisfy the markets. Read more at ft.com.