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Bank of England Governor Mervyn King.
Bank of England Governor Mervyn King.
(IAN HODGSON/AP)

BREAKINGVIEWS

There’s no fix for British bank governor’s trilemma

Reuters Breakingviews delivers agenda-setting financial insight. Its global correspondents react to stories as they develop, delivering sharp and provocative commentary on big financial news as it breaks.

Monetary policy would be so much easier if people, banks and markets obeyed the monetary authorities’ orders. In such a world, Thursday’s dictum from Mervyn King would be enough to put a stop to the pound’s recent decline. The U.K.’s central bank governor said that the pound was “probably” properly valued, after respective 6- and 7-per-cent falls against the euro and dollar so far in 2013.