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.
Has the election countdown already begun?
While the official date for the next general election is not yet be set in stone, although 6 May appears to be a favourite, it looks as though the countdown to the election has already begun. We have seen the Labour Party and the Conservative Party in the weekend press with suggestions of new policies and new strategies and various criticisms of each other. We are seeing taxation brought to the fo...Read More
Is there a triple whammy on the way for the UK economy?
There are growing concerns over a potential triple whammy with regards to the UK economy with high inflation, high unemployment and subdued growth in the economy. If this was to happen, and it is still a big if, this could decimate the UK economy and push the country back into recession at a time when there is no additional funding available to the government to bail out the economy. So where woul...Read More
Unions attack closure of 90 tax offices across the UK
The UK government appears to be on a collision course with unions after the announcement of 90 tax office closures across the UK. These closures are rumoured to put around 3,400 jobs at risk at a time when the government had promised increased investment in public services. The unions have been quiet of late, after flexing their muscles earlier in the year, but this latest fallout appears to put b...Read More
Alistair Darling copies US policy on bank nationalisation
Alistair Darling has this evening come out and suggested that the vast majority of UK banks should retain a percentage of private investors so that a return to the private sector can be completed as and when the time is right. The UK government currently has significant holdings in a number of leading UK banks and there has been a suggestion that the likes of Lloyds TSB and possibly Royal Bank of...Read More
Lookers issue downbeat statement on the UK car industry
Despite yesterday's announcement from Pendragon that the company believes the mountain of unsold cars in the UK is nearly clear, fellow car dealership Lookers has today issued a statement which is a little more conservative to say the least.
While the company recognises that the UK government's £300 million car scrappage scheme has gone a long way to injecting interest into the sec...