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.
Miliband announces Labour plans to increase minimum wage
19/05/2014 Ed Miliband has announced that if Labour were to win the general election they will take “radical action” against low pay by setting a statutory minimum wage target linked with average earnings. Mr Miliband said the current system is a “scandal” as millions of people are “unable to make ends meet” despite being in employment. Although he has not announced what the ex...Read More
London jobs market "strong", says Halifax
The London jobs market went from strength to strength in July, with an increase in the number of job placements and strong demand for staff, according to the latest London Labour Market Report from Halifax Financial Services. The report's unique employment barometer registered a level of 64 in July, up from 61.3 in June, which is the highest level since November 2000.These figures point to an upt...Read More
Is there a UK government bias towards the Royal Bank of Scotland?
The last few weeks have been dominated by the Royal Bank of Scotland, pension arrangements, write-offs and weakened balance sheets. The company has taken on board more taxpayer funding than any other company in the market and just yesterday there was an indication that Lloyds Bank was being denied access to immediate toxic asset insurance while the Royal Bank of Scotland deal has already been seal...Read More
Head of Royal Mail calls on unions to "shut up"
Adam Crozier, the head of Royal Mail, has this evening set the scene for some very difficult negotiations later this week after telling the unions to "shut up". In what many believe are the last ditch talks before more strike announcement prior to Christmas, this is a high-risk strategy by the head of Royal Mail and one which could backfire spectacularly!
It would seem that Adam Cro...
When will UK base rates start to rise?
UK base rates have remained at 0.5% for some months now as the UK government looks to shore up the UK economy and try to inject more economic activity across the board. However, despite the fact that base rates have remained historically low for some time now there is still a need for significant improvement in liquidity levels in the commercial money market.
Not only are we seeing...