Yet one member of the new monetary committee that advises the central-bank governor confirms that it has recently adopted a pro-inflationary stance.
As governor of the Dutch central bank, a post he held for 15 years, he once missed a meeting of Europe's powerful monetary committee to play a match.
"It does, however, potentially give the Monetary Policy Committee more flexibility to ease monetary policy further, " he added.
The Conservatives would create a Financial Regulation Division within the Bank of England and a Financial Policy Committee similar to the rate-setting Monetary Policy Committee, which would monitor systemic risks and have the power to break up banks.
Sir Mervyn appeared at the committee along with Bank official Paul Fisher and monetary policy committee members Martin Weale and Ben Broadbent.
BBC: Treasury Committee: Sir Mervyn warns of EU deleveraging
Speaking to the Economic and Monetary Affairs Committee on 4 October 2011 he said that economic and monetary union had provided stability and low inflation for over a decade.
BBC: Jean-Claude Trichet: Economic crisis biggest since WWII
It said the Bank of England's Monetary Policy Committee (MPC), which sets interest rates and authorises other monetary boosts, such as QE - which involves pumping money into the economy to boost growth - should look at loosening the purse-strings.
Labour's Chris Leslie warned that there might be circumstances under which the aims of the Financial Policy Committee, which primarily focuses on financial stability, clashed with those of the Monetary Policy Committee, which mainly deals with inflation-targeting, but is also obliged to take growth into account when making decisions.
While the markets seem to expect further action by the US Federal Reserve which could weaken the dollar (and has against most currencies), the latest meeting minutes from the Monetary Policy Committee of the Bank of England also suggest some members of that group leaning toward further monetary easing.
The central bank's monetary policy committee, known as Copom, meets eight times a year.
This was expected to increase pressure on the Monetary Policy Committee to start raising interest rates.
Mr King and Monetary Policy Committee colleague Martin Weale said they were watching inflation expectations closely.
Sharon Bowles, who chairs the European Parliament's Economic and Monetary Affairs Committee is appalled.
The rally also came ahead of Tuesday's meeting of the Federal Reserve's monetary policy committee.
As we know, a majority of his colleagues on the Monetary Policy Committee disagree.
By contrast, the monetary policy committee has shown its willingness to act preemptively.
Atlas Foundation, James Grant, and the granddaddy of monetary conferences, The Committee for Monetary Research and Education.
The Bank's monetary policy committee (MPC) voted earlier this month not to change its current policy position.
Two of the Bank of England's Monetary Policy Committee members voted for a rise at their last meeting.
But the betting must be that the Monetary Policy Committee will step up to the plate this week.
Three members of the Monetary Policy Committee voted for more quantitative easing last month - including the Governor himself.
The meeting minutes from Copom, the monetary policy committee, show they are on their way to accomplishing that task.
Sir Alan Budd, who was on the first Monetary Policy Committee in 1997, is promoted to knight grand cross.
BBC: Sir Alan Budd and Hector Sants on New Year Honours list
Still, few economists expect the Bank's monetary policy committee to change rates at its next meeting, on January 8th.
However, for the previous three months, three members of the Bank's rate-setting Monetary Policy Committee have voted to increase rates.
Indeed, many in the City think the Monetary Policy Committee might vote for more quantitative easing as early as tomorrow.
Adam Posen, a member of the Bank of England's Monetary Policy Committee, lamented that fact in a speech in October.
Earlier this month, the Bank's monetary policy committee voted again to maintain interest rates at the record low of 0.5%.
In the summer of 2008, the Monetary Policy Committee (MPC) was still debating whether to raise interest rates to confront inflation.
Ben Broadbent, from the Bank of England's Monetary Policy Committee, has a good go at this in his latest speech.
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