Governor of the Bank of England King arrives at the Guildhall in the City of London
Governor of the Bank of England Mervyn King arrives for the dinner of the G20 Finance Ministers' meeting at the Guildhall in the City of London September 4, 2009. REUTERS

Mervyn King, Governor of the Bank of England, was cautious but hopeful today as he faced a Treasury Select Committee of MP's. The Governor of UK's Central Bank, in charge of financial regulation, King said:

"The wider economic problems around the world underline the fact that we cannot be confident that the recovery in demand, output and employment here in the UK will be sustained." he said before adding that the Q2 UK GDP was 'encouraging' though 'still just a number'.

King warned that tightening credit conditions and global economic fragility stood in the way of the recovery.

King added that his "foot is firmly on the monetary accelerator pedal," as the Monetary Policy Committee face increasing pressure to look after core inflation which remains 'uncomfortably high' to some of its membership.

However, facing the Treasury Select Committee today, King reassured them that he was 'up to the job' when it came to the economy - "is about the appropriate degree of stimulus, not about applying the brakes," he said when asked about how he would manage it.

Finally, as rumours suggest that he 'urged' leader of the Liberal Democrats, Nick Clegg to join the coalition, Labour MP, Chuka Umunna, how he felt about that?

"I do not think central bankers ever feel comfortable when they are drawn into comments made by politicians." he began, before calmly adding "I said nothing that was not already in the public domain."

"I do not think central bankers ever feel comfortable when they are drawn into comments made by politicians. But on this occasion the government has asked openly in writing for me to express my views which I did at the inflation report press conference, and I was asked if I would accept a telephone call by the deputy prime minister on the Saturday morning. I think it would have been unreasonable not to have accepted that telephone call. I did so and I had a private conversation". he said.

"There was nothing I said in that conversation that was different from what I had said in public."

GDP Bank of England