AWAZ APNI: The Conservative and Liberal Democrat coalition has a "very clear and binding commitment" to cut the nation's deficit, according to the Bank of England Governor.
Mervyn King said he had been told of their economic proposals and was pleased by their focus.
The Governor said the deficit was the "single most pressing problem facing the UK" and that would take a full parliament to deal with it.
He added that markets were waiting for a very strong signal from the new administration - and expressed confidence that they would soon see a clear plan.
"I have been told what is in the agreement between the Conservatives and Liberal Democrats this morning and I am very pleased that there is a very clear binding commitment to accelerate the reduction in the deficit," he said.
Despite there being signs of economic recovery, Mr King re-emphasised that the financial crisis was "far from over".
His comments came as the latest unemployment figures showed the total number of Britons looking for work was at its highest level in 16 years.
The Bank of England's quarterly inflation report predicted a pick up in growth, although it added that conditions remain uncertain.
It said the pace of recovery will be dampened by the need for "substantial fiscal tightening" and a further strengthening of banks' balance sheets.
The Governor was quizzed over comments he reportedly made in private prior to the election, in which he said whoever got into power would be so unpopular due to necessary spending cuts and taxes, they would be out of power for a generation.
Mr King said people would be best placed to take the reported quotes with "a big pinch of salt". Posted by: John
Mervyn King said he had been told of their economic proposals and was pleased by their focus.
The Governor said the deficit was the "single most pressing problem facing the UK" and that would take a full parliament to deal with it.
He added that markets were waiting for a very strong signal from the new administration - and expressed confidence that they would soon see a clear plan.
"I have been told what is in the agreement between the Conservatives and Liberal Democrats this morning and I am very pleased that there is a very clear binding commitment to accelerate the reduction in the deficit," he said.
Despite there being signs of economic recovery, Mr King re-emphasised that the financial crisis was "far from over".
His comments came as the latest unemployment figures showed the total number of Britons looking for work was at its highest level in 16 years.
The Bank of England's quarterly inflation report predicted a pick up in growth, although it added that conditions remain uncertain.
It said the pace of recovery will be dampened by the need for "substantial fiscal tightening" and a further strengthening of banks' balance sheets.
The Governor was quizzed over comments he reportedly made in private prior to the election, in which he said whoever got into power would be so unpopular due to necessary spending cuts and taxes, they would be out of power for a generation.
Mr King said people would be best placed to take the reported quotes with "a big pinch of salt". Posted by: John
