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.
Is The Retail Sector Getting Worse?
After a number of years when growth was flying high and life on the high street was very lucrative, it seems that we are now entering a very different scenario. Retails sales for April are expected to show a further decline of around 0.5% (the second consecutive month of falls) which will bring the annual rate of sales growth on the high street back to around 4%. So what does the future hold?...Read More
Brits turn to internet for financial advice
With six-out-of-ten UK households now online, Brits are increasingly turning to the internet for advice on their finances, research from Birmingham Midshires suggested.Instead of going to consultants and independent financial advisors, as many as 94 per cent of people are looking for advice online, from seeking information on medical ailments to looking for financial and legal advice.Some 43 per c...Read More
Bank Of England reduces base rate by 1%
This was perhaps the worst kept secret in the financial markets as the Bank of England reduced base rates by 1% to a 50 year low of 2%. This is a drastic step although it was flagged only a few days ago by Mervyn King, the Governor of the Bank of England, and was wholly expected by both the investment markets and the currency markets.
In traditional recessionary periods the change i...
What has happened to Alistair Darling?
As the general election comes to a head, one face which has been missing from the TV and election trail is that of the Chancellor of the Exchequer Alistair Darling. If you cast your mind back to the time when Gordon Brown was Chancellor of the Exchequer and Tony Blair was the Prime Minister, they were literally joined at the hip. So where is Alistair Darling? While the Chancellor's name has bee...Read More
UK construction sector still under pressure
A report today by the Chartered Institute of Purchasing and Supply's has confirmed that the UK construction sector is still under immense pressure and the workforce has reduced yet again for the 14th month in a row. While there is no doubt that business is still tough, the Chartered Institute of Purchasing and Supply's managers index showed that business levels are falling at their slowest rate fo...Read More