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.
Car manufacturers make hay while the sun shines
The UK government has today announced that just under 155,000 cars have been acquired by UK motorists under the car scrappage scheme. This is the scheme which allows vehicles aged 10 years or over to be scrapped in exchange for a £2000 discount on a new vehicle. The idea is that by scrapping the less efficient vehicles and replacing them with more efficient vehicles there will be a significant im...Read More
Are we on the verge of a Christmas postal strike?
Despite hopes that the Royal Mail and unions had buried the hatchet and were looking to the future with regards to a long-term agreement, sources close to the Communication Workers Union have let it be known that talks are stalling and concern is growing. It seems as though, in private, the Communication Workers Union is looking to threaten further industrial action in the run-up to Christmas, som...Read More
Alan Sugar joins the UK government
Sir Alan Sugar has today agreed to join the UK government in an advisory capacity as Gordon Brown looks to rebuild his battered reputation and standing in the UK. The serial entrepreneur will take on an unpaid adviser role and has apparently been promised a seat in the House of Lords. He will advise Lord Mandelson on practical ways to help UK businesses in a move which many believe is more public...Read More
Lloyds Bank set to honour staff bonuses
In a move which is sure to cause problems at the Treasury it has been revealed that the top directors of Lloyds Bank have been telling staff that the government bailout will not change the way they operate and there are very few actual restrictions. Indeed it has also been revealed that staff bonuses for this year will be honoured at a time when the group is supposedly struggling to finance its c...Read More
European Union set to discuss bankers bonuses
In yet another sign of the times, the European Union will today meet ahead of the G20 summit to discuss the ongoing saga of banker's bonuses. Despite the fact that many people believe it is impossible to regulate banking remuneration packages it seems that the EU, the UK, the US and many other governments and leading bodies around the world are determined to push through tighter regulation.