No guarantee bank lending will rise, says Mervyn King

The governor of the Bank of England, Mervyn King, has said he could not guarantee that the latest round of quantitative easing will increase bank lending.

The governor was questioned by MPs at the Treasury Select Committee about the Bank of England's latest move to pump a further £75bn into Britain's ailing economy.

Mr King defended the measure saying bank lending would not fall "as far as it might otherwise have done".