Qualified advisers answering your
Financial Questions
for FREE within 60 minutes*

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.

Share this..

Related stories

Ask your question now!

Ask your question in the box below

Contact details are required so we can respond to your question

Allow 60 minutes* for a response from our UK qualified advisers

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:

Latest News


Bad spending habits and budgeting tips- bills

One of the biggest burdens people face each month is their bills. They can often end up costing a lot of money, especially if a unexpected bill creeps up on you! We have looked at some of the bad spending habits people fall into when paying bills, and the ways they can snap out of them.

Read more

Useful Links

Popular Searches

Please Enter More Details

Enter More Details