Monday, December 22, 2008

BBC NEWS | Business | Bank 'did not understand crisis'

The Bank of England did not understand the severity of economic problems before the current financial crisis, its deputy governor says.Sir John Gieve told the BBC that the Bank knew "crazy borrowing" was taking place and the price of houses and other assets was rising unsustainably.But the Bank thought this problem was less serious than it turned out to be, he said in an interview for Panorama.The Bank relies too much on interest rates to control the economy, he added.
BBC NEWS | Business | Bank 'did not understand crisis'
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