One theory doing the rounds

Sam Coates has an insight into the apparent falling out of the Bank of England and the government.

One theory doing the rounds in government is that Merv was actually trying his hand at a touch of media management. The Governor nailed his intellectual sails to the quantitative easing mast, believing that printing money is needed to avoid deflation. But yesterday's CPI figures came as a worrying shock to Merv - 3.2 per cent. So he needed to create a distraction, to avoid questions being asked about his own decisions. Hence his little present for Gordon at the Treasury Select Committee yesterday. That, as I say, is one theory being talked about in Whitehall.