King in line for BoE top job

King, currently deputy governor responsible for monetary policy, is an "excellent appointment", said Russell Jones, chief international economist at Lehman Brothers in London. "He’s familiar, he represents consistency and he’s the best alternative."

Economists generally view King’s appointment as a signal that UK interest rates are likely to rise over the coming months.

"Given his hawkish reputation, this confirms that rates have troughed in the UK," said Steven Saywell, senior currency strate