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.
Feelgood factor set to return in World Cup year
As the English football team get ready to pack their bags for South Africa and the 2010 World Cup there is a feeling that next year could be interesting for the UK economy as major sporting events can impact significantly upon consumer confidence and economic activity. A look back in history shows us that a feelgood factor can push many people onto the streets to spend, bars are full, sports shops...Read More
Emerging economies 'catching US'
The economies of emerging nations are gaining ground on the US in terms of competitiveness, a new report has stated.Today's annual study from business thinktank IMD says the world economy has "never been as dynamic", with none of the 55 economies in its World Competitiveness Yearbook in recession.But the Lausanne-based organisation warns that the growth in developing economies could force the US a...Read More
John Lewis reports sales down 6.6% compared to same week last year
Weekly sales figures from John Lewis may have given the retail sector more hope than ever before but there are concerns that the reversal of a double digit sales reduction the week before last may only be a temporary reprieve. While there will no doubt have been some pick up due to the 2.5% reduction in VAT we have also seen a number of high-profile sales at stores such as John Lewis, Marks & Spen...Read More
Consumers suffer as inflation makes a comeback
UK consumers have been hit in the pocket June September with a significant increase in food and non-food inflation and the high Street. The annual rate of food price increases in the UK is now running at 4% for the year to September 2010, against just 3.8% last month. When you also take into account the fact that overall shop price inflation has increased to 1.9% last month from 1.7% in the previo...Read More
Who will bailout the UK if funds run short?
As the UK slips further and further into debt both on an individual and a national basis there is growing concern that EU members will step into the fore and offer financial assistance in exchange for greater ties with the EU. While it would be wrong to suggest that the UK is any way on the verge of bankruptcy, there is no doubt that the expected £1 trillion of debt due to be built up over the ne...Read More