Mervyn King reappointed

Mervyn King will continue as governor of the Bank of England for five more years, it has been confirmed.

Mr King's current tenure at the UK's major financial institution was due to expire at the end of June but he will now continue until the summer of 2013.

The 59-year-old had come in for criticism from some quarters because of his handling of the Northern Rock crisis last year.

Some critics have suggested Mr King took too long in his response to the first bank run in Britain in living memory.

But he appears to retain the confidence of the Treasury and has been chosen as the person to lead the Bank in an uncertain financial climate.

"I am delighted that Mervyn King has been appointed as the governor of the Bank of England for a further five-year term," chancellor Alistair Darling said.

"He has played a key role in delivering macroeconomic stability in the UK, and his leadership and experience will continue to prove invaluable to the Bank of England."

Mr King was first appointed as the Bank's governor in July 2003, having previously been deputy governor from 1998 and chief economist and executive director for the previous seven years.

Cambridge- and Harvard-educated Mr King is a notorious hawk and recently told an audience of the Institute of Directors and the CBI that the outlook for 2008 was gloomy.

"In 2008 it is likely that a less buoyant housing market will go hand in hand with slower growth of consumer spending," he said in Bristol last week.

He added that there were "distinctly choppy waters in 2008" and that the Bank faced a "difficult balancing act" to ensure the economy stays afloat.