Countries must put aside individual interests and work towards a collective solution to address global imbalances, Mervyn King, the governor of the Bank of England, said on Tuesday.

Speaking at the Black Country Chamber of Commerce, King said: "The need to act in the collective interest has yet to be recognised, and, unless it is, it will be only a matter of time before one or more countries resort to trade protectionism as the only domestic instrument to support a necessary rebalancing."

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