Mark Carney has admitted that the allegations over foreign exchange rate fixing are “as serious as Libor, if not more so” but has fiercely denied that the Bank of England was warned about them eight years ago.
The Governor of the Bank of England told MPs that ensuring the probity of foreign exchange rates is “incredibly important” for the $3 trillion (£1.8 trillion) currency market, 40pc of which is traded in London. He added that investigating the allegations was “fundamentally important” for the Bank of England itself.
Mr Carney revealed that the Bank is about to appoint a new Deputy Governor responsible for markets and banking. The first task of the new director, to be revealed next week, will be to “conduct a root-and-branch review of how [the Bank] conducts market intelligence”, Mr Carney said. It will be the fourth deputy governor – a record for the Bank, which managed with just one between 1694 and 1998.