King fears ciris is ‘worst ever’ as banks hit by credit downgrade

7 October, 2011


The Bank of England Governer, Mervyn King, fears the current economic crisis could be the worst ever seen in the UK, in an interview with Sky News.

The claim comes as Moody’s, the credit agency, has downgraded its ratings for LloydsTSB, RBS and Santander UK.

Additional Quantitative Easing, announced yesterday, has already hit the Pound, and if King and Moody’s are right, then things could get worse before they get better for the value of sterling. When QE was first introduced in 2008-9, the Pound fell very significantly against most major currencies in the following months.

Further afield, employment figures out today in the USA and Canada both showed better than expected results, giving the USD and CAD a little strength in afternoon trading.