Mervyn King plays down the threat of inflation
Mervyn King, the governor of the Bank of England, has this evening played down the threat of inflation in the UK suggesting that inflation is just as likely to under shoot its target as to overshoot. This is the first major speech from Mervyn King since August and would appear to suggest, just prior to the issue of October MPC minutes, that there is some debate within the committee as to the direction of the UK economy.
Mervyn King has many months suggested that UK inflation is not a reliable measure of economic activity and the underlying strength of the UK economy. He has for some time believed that inflation will fall back to within the banks 2% target rate in the short to medium term without any major action from the authorities. Indications that the UK economy is beginning to weaken, after a period of relative buoyancy, would seem to support this belief although so far the figures have refused to fall into place.
The Bank of England is beginning to give the impression of a body which is frustrated by the relative strength of inflation despite numerous attempts to talk down the threat of inflation in the UK.
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This comes at a time when onli...
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Mervyn King would appear to have single-handedly caused a significant sell-off in the currency markets this morning with sterling now at a five-month low. Despite the fact that yesterday's Bank of England report gave both positive and negative angles on the UK recovery, today's comments by Mervyn King are certainly as clear as day. So what exactly did the Gov of the Bank of England say to the mark...Read More
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Postal union offers deal to avert mail strike
The Communication Workers Union has today informed Royal Mail management that is willing to enter last ditch talks with the aim of averting the forthcoming postal strike. While the unions have given some leeway after recent requests from the Royal Mail management, they have made it clear this is the last chance before they will have no option but to strike.
There are many behind the...