The Bank of England's governor should step out of the political arena and be careful to not tie himself too closely to fiscal strategies, the Labour Party's shadow chancellor said on Friday.
In an interview with the Financial Times, Ed Balls said Mervyn King was risking the central bank's reputation by endorsing policies that could tip Britain into a double-dip recession.
In a speech last month, King defended the Conservative-led coalition government's economic policy despite a shock 0.5 percent contraction in the economy in the last three months of 2010.
"The last thing you ever want is for the Bank of England to be drawn into the political arena," Balls told the newspaper.
"Central bank governors have to be very careful about tying themselves too closely to fiscal strategies, especially when they are extreme and are making their job on monetary policy more complicated."
The Labour Party appointed Balls shadow chancellor last month to replace Alan Johnson who quit for family reasons after three months in the job.
He has criticised a tough austerity drive launched by the government to reduce a deficit of more than 10 percent of GDP, saying it will damage the economy.
Balls told the newspaper a double-dip recession was a possibility but "not the most likely outcome," but urged Osborne to slow down the pace and scale of his deep public spending cuts.
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