Central Banking

Gieve: we need new instruments

Sir John Gieve, the deputy governor of the Bank of England, has admitted that the Bank underestimated the scale of the credit crisis and said the turmoil has demonstrated the need to equip central banks with new policy tools.

Gieve's comments were made during interviews with the BBC for a documentary on the credit crisis that will air on the evening of 22 December.

Gieve's comments on the Bank's failure to predict the scope of the crisis and the need for new policy instruments do not feature i