Governor promises ‘ruthless’ probe into forex rate-fixing allegation

THE governor of the Bank of England pledged to MPs today that the Bank would “ruthlessly” inquire into what officials knew about alleged rigging of currency rates by forex traders.

Mark Carney’s appearance before the Treasury Select Committee follows the suspension earlier this month of an unidentified Bank employee.

The central bank has said that so far there is no evidence that its staff colluded, participated or condoned unacceptable activity.

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The governor said he was not pre-judging any inquiry into the individual,and that suspension was not in itself a disciplinary action. But he said: “We will ruthlessly, relentlessly follow through the investigation of what happened.”

It is believed the inquiry by independent legal counsel will focus on whether BoE officials were aware of the alleged rigging of currency rates, even if they did not collude in such manipulation or share confidential information.

“It’s imperative that we look at all aspects of this situation, and we re-confirm the integrity, probity, prudence and dedication of ongoing employees of the Bank of England,” Carney added.