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.
Nick Clegg back on his soapbox
Nick Clegg, making full use of the razzmatazz surrounding his appearance on the recent TV debate, has today demanded that the UK government suspend Goldman Sachs after the company became embroiled in a $1 billion fraud investigation in the US. Goldman Sachs is one of the main advisers to the UK government and while nothing has been proved and no action has been taken in the UK it seems that Mr Cle...Read More
OFT reveals cartel in recruitment industry
The Office of Fair Trading (OFT) has today revealed a £39.27 million fine which has been spread amongst six of the U.K.'s best-known recruitment agencies. While Hays, perhaps the U.K.'s best-known agency, has received the biggest hit with a £30.36 million fine, two other companies which came forward to confirm the existence of a cartel were exempt from the fines which could have been as high as...Read More
RMT union forced to call off rail strike
The RMT union has today been forced to call off a planned strike next week which could have coincided with Gordon Brown calling the date of the next election. The strike has been suspended after a court ruling regarding alleged irregularities and the alleged unlawful nature of the strike action. This is a bitter blow to the RMT union and while Network Rail management may be feeling a little happie...Read More
Did the authorities overdo the airspace lockdown?
As the authorities finally decide to lift the UK airspace ban at 10 PM there is confusion and anger in the airline industry with British Airways for one suggesting that the lockdown and grounding of all airlines in and around Europe was overdone. British Airways is not the first company to step forward to complain about the lockdown as a number of prominent airlines around the world have undertake...Read More
Bank of England forced to increase quantitative easing program
Today's announcement by the Bank of England that a further £50 billion would be pumped into the UK quantitative easing program is one which was very much out of the banks control. With UK lending at rock bottom, consumers struggling to pay off their debts and UK businesses going to the wall on a weekly basis, the situation is now critical. There had been hopes that the quantitative easing program...Read More