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.
European Central Bank rate falls to 2%
The ECB (European Central Bank) has today revealed a reduction of 0.5% in European base rates down to a level of 2%. While this is a record low for the ECB rate there had been calls for a significantly larger cut to try and stimulate the Eurozone. Many believe this light touch move will put the ECB and EU at serious loggerheads with member governments who have seen their domestic economies collaps...Read More
Railway strike could cost £600 million a day
It has been revealed that millions of people in the UK could struggle to make it to work on Tuesday, 6 April due to the rail strike. It is estimated that 10% of the 30 million UK workforce will be affected which will cost the UK economy around £600 million a day in lost revenue and extra cost. It will be interesting to see whether the rail strike proceeds as planned because it has the potential t...Read More
Would you move overseas in the future?
This is a question that more and more UK citizens appear to be asking themselves as the cost of living, the standard of living for many and employment prospects in the UK continue to go against the general population. We have a situation where the tax take for the government has never been higher, national debt is at record levels and the banking sector is literally refusing to fund traditional co...Read More
Is the internet your way out of financial trouble?
While the internet has changed so many areas of our every day lives it has also opened up a mass of opportunities which many people have yet to realise. However, with the recession starting to bite in the UK it seems as though now may be a perfect time to take a look at possible options open to you.
People seem to miss the point that the internet has not only opened up local market...
Steelworkers union denies offering to take a pay cut
As reported recently there have been strong rumours that unions representing the workforce of Corus, the worldwide steel business, are looking to hammer out a deal with the company which will see pay cuts across the board for the next six months in order to save at least one factory earmarked for closure. However, the unions are currently denying this claim although they agree they have an imminen...Read More