Sarkozy trips up over Bank of England

PARIS (Reuters) - French presidential candidate Nicolas Sarkozy's grasp of how monetary policy works across the Channel in Britain appears a bit dated -- by a mere decade.

A prominent critic of the euro-boosting effects of interest rate increases by the European Central Bank, Sarkozy defended his views when quizzed by a British journalist on French television late on Thursday.

"You, the English, I love England a lot you are world champions! As soon as your growth falls, what do you do? Gordon Brown, the chancellor, and the governor of the Bank of England meet and decide to lower rates, to lower the pound," he said.

News to Bank of England Governor Mervyn King, no doubt, since Brown made the British central bank independent shortly after Labour came to power in May 1997.

Sarkozy's comments were all the more surprising given that he served as finance minister in 2004.