King says Tories were right all along about the deficit

Telegraph
"The big news from the Bank of England’s Inflation Report press conference is that the Governor, Mervyn King, has been fully briefed on the new coalition government’s plans for deficit reduction and is “pleased” by what he heard. After months of dancing around the goalposts, coded messages and heavy hints, the Governor has said it outright; the Tories were right all along.

The Governor was asked for his advice on whether it made sense to begin deficit reduction this financial year, and he answered strongly in the affirmative. The Lib Dems, it will be recalled, had run with the previous Labour Government in condemning Tory plans to begin deficit reduction this year with £6bn of spending cuts. The Governor was unequivocal in advising that a commitment has to be shown immediately to cut back on public sector borrowing.

He also pronounced himself satisfied with coalition plans for accelerated deficit reduction that go beyond those announced in the Budget last March.

So there you have it. It was always suspected that Mr King thought the Tories were talking more sense than Gordon Brown on the deficit, and ahead of the election he came as close as he dared to saying it. Well, now he has, and in terms. Looking at what has happened on the Continent, he is surely right....."