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.
The UK recession increases demand on local services
The ongoing recession in the UK has seen a large spike in applications for state schools, housing benefits, help for the elderly and other public services. This is set to place enormous pressure on local government budgets which have already been cut back by central government over the last few months. When you also throw in the recent losses on Icelandic bank deposits as well as suggestions that...Read More
Alistair Darling defends Gordon Brown over G20
Alistair Darling has come to the defence of Gordon Brown with opponents suggesting that his much acclaimed tax deal with G20 members is in fact something of a sham. It has been claimed by the Tory party that the deal which Gordon Brown announced on Friday is in fact nothing more than a discussion paper where the situation has been outlined in detail. It looks as though the devil is in the detail a...Read More
Why Is The Humble Post Office Disappearing?
As more MPs join the chorus of criticism for the ever growing closure of post offices across the UK it seems that more and more people are being left stranded. Despite assurance by the government that nobody would be any worse off after the closures many people are being forced to travel miles for the simplest of actions such as withdrawing pensions, etc.
The introduction of so cal...
Budget Headlines : Companies able to defer tax bills for rest of the year
Companies able to defer tax bills for rest of the year...Read More
Thomas Cook set to take a £20 million swine flu hit
While the popular press has taken swine flu off the front pages, at least for the time being, Thomas Cook has today announced that the company will be forced to take a £20 million hit due to swine flu issues in Mexico. However, with many experts predicting a second phase of swine flu infections towards the end of 2009 the situation for the travel industry could get worse before it gets better.