10:00PM BST 06 Oct 2011
Sir Mervyn King was speaking after the decision by the Bank's Monetary Policy Committee to put £75 billion of newly created money into the economy in a desperate effort to stave off a new credit crisis and a UK recession.
Economists said the Bank's decision to resume its quantitative easing [QE], or asset purchase programme, showed it was increasingly fearful for the economy, and predicted more such moves ahead.
Sir Mervyn said the Bank had been driven by growing signs of a global economic disaster.
"This is the most serious financial crisis we've seen, at least since the 1930s, if not ever. We're having to deal with very unusual circumstances ."
Announcing its decision, the Bank said that the eurozone debt crisis was creating "severe strains in bank funding markets and financial markets".