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.
Government prepares equal pay laws
Women should have their right to equal pay strengthened by new laws, minister for equality Harriet Harman said today.The government is set to beef up the legislation in its upcoming Equalities Bill, which puts closing the gender pay gap at high priority.Under the terms of the Bill, age discrimination is also set to be tackled, with the upper age limits currently imposed by many insurers outlawed.S...Read More
Marks & Spencer Christmas sales disappoint
In this new period of renewed hope for the UK retail sector a major setback occurred today with news that Marks & Spencer festive sales were up by just 0.8% in the three months to Boxing Day. This is a far less impressive performance compared to the likes of John Lewis and Next and today we saw the share price of Marks & Spencer fall on investors disappointment. So what does this mean for the UK r...Read More
Are UK voters deserting the Liberal Democrats?
As UK voters get ready for the general election on 6 May there are signs that the sudden surge in support for the Liberal Democratic Party is starting to fall by the wayside. There is no doubt that Nick Clegg has breathed a new lease of life into the UK political scene but upon further investigation many people are now becoming concerned about underlying policies. For many years the Liberal Dem...Read More
IMF suggests that the UK economy is weakest of the developed world
A recent IMF survey suggests that the UK economy is the weakest of the developed world and the UK recovery period will be long and hard. Like so many financial institutions of late, the IMF has centred upon the weak position of the public purse where debt has grown to £600 billion and is set to crash through the £1 trillion mark over the next three years. The Labour Party claims yesterday would...Read More
Northwest hit by youth unemployment
A report by the Prince's Trust has today revealed that more young people in Liverpool and Manchester are growing up in jobless households than anywhere else around the country. The figure for Liverpool and Manchester equates to one in three with a figure for the UK as a whole of one in six. The situation for the Northwest of England overall is very difficult and very challenging to say the least....Read More