The Bank of England Governor, Mervyn King, warned yesterday that high debt levels pose massive economic challenges and reiterated his stance against monetary tightening as he sees higher rates will intensify the problems.

In comments yesterday at a committee of the European Parliament in Brussels, King said the economic consequences of high-level indebtedness now would become more severe if rates were to rise, downplaying chances for soon to be seen monetary tightening from the BoE as the split among members prevail.