Status quo at Bank of England as King retains post

Bank of England governor Mervyn King has been reappointed to serve a second term once his initial five years in the post expires on June 30th 2008.

The reappointment was announced by the government today, with chancellor of the exchequer Alistair Darling saying: "He [Mr King] has played a key role in delivering macroeconomic stability in the UK and his leadership and experience will continue to prove invaluable to the Bank of England."

News of the reappointment may mean the approach taken by the monetary policy committee to setting interest rates changes little in the future, which may help those planning their finances as they seek to self build their homes.

Mr King was initially appointed in 2003 after serving as deputy governor under Eddie George from 1998.

Prior to 1998 he had been the Bank's chief economist and an executive director since 1991.


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