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.
3 Way Split On MPC Concerns Markets
As the minutes for last months Bank of England MPC meeting were released it soon became apparent that there is three way split on the committee with one voting to increase rates, one voting to reduce rates and the remaining seven voting to maintain rates at 5%. However, the general opinion outside of the Bank is that rates will fall in the short term to fight the economic decline and as a consequ...Read More
Pawnbrokers benefiting from the ongoing economic recession
While in the eyes of many people pawnbrokers are seen as an old-fashioned business with very little relevance in the markers of today, the ongoing economic recession is starting to change the view of many investors. It has been revealed that business across the pawn broking industry has increased significantly as the UK recession continues to bite and more and more people become more and more desp...Read More
When will we know the recession has officially ended?
As many people around the UK continue to become more and more confused as to the current state of the UK economy, when will we actually know that the recession has ended?
This is a very tricky question bearing in mind the Office for National Statistics has issued a number of performance statistics only to adjust them substantially in the weeks and months ahead. Officially we entered...
UK government are the losers in EU shakeup
On the surface it appears that the UK government has been duped by its EU partners with French President Nicolas Sarkozy suggesting that Britain is the "big loser" in the recent EU shakeup. After apparently agreeing a deal with the French government, the UK appears to have walked in to a trap with Michael Barnier, the former French agriculture minister, catapulted in as commissioner for the intern...Read More
Is the euro becoming a laughingstock?
As concerns continue to mount regarding the future of the European Union, and the euro, a number of experts are starting to consider how we arrived at this situation. Only a few weeks ago the European Union appeared to be going from strength to strength, taking in new powers and new controls from various member states. However, the Greek debacle would appear to have been the Achilles' heel of the...Read More