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Bank of England Gov. Mervyn King dismissed an idea that the central bank should cancel the government debt it purchased as part of its quantitative easing program. “The Bank could not countenance any suggestion that we cancel our holdings of gilts. The Bank must have the ability to reverse its policy – to sell gilts and withdraw money from the economy – when that becomes necessary. Otherwise, we run the risk of losing control over monetary conditions,” King said in a speech in Wales. He said the Bank of England will “think long and hard” before deciding to make further asset purchases but stands ready to inject more into the economy.