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.
Economy prospects worry Brits
A minority of British consumers are concerned about the economy's direction in the next 12 months, a survey suggests.The 2,000 respondents to a survey carried out for investment management firm Selftrade admitted their worries about a number of aspects of the UK economy.Three in five said they expected the Bank of England to raise interest rates in the next 12 months and 26 per cent said they fear...Read More
The collapse of the Dubai economy continues
While it may only have started a couple of days ago, the situation in Dubai is worse than ever with the ruling family now looking at selling a number of prized assets to try and pay down the rumoured $80 billion in debt which is dragging the economy down. What started as a request for a suspension of debt repayments has quickly developed into the possible default by a government in what is one of...Read More
US government may lose Triple-A rating
News that the US government may lose the vital Triple-A rating which the United States has enjoyed for some time sent shockwaves through US stock markets as the ferocity of the economic downturn finally began to hit home. While there does not appear to be any short-term likelihood of a downgrading of the AAA rating there are serious concerns for the future.
The long weekend in stock...
Damning report issued into UK banking collapse
The Treasury Select Committee has this week issued a damning report into the UK banking system and the recent near collapse of the sector. Citing the uncontrolled surge in bonus and remuneration payments the committee has ultimately left the blame for the near collapse at the door of UK regulators. However, despite public uproar and the fact that nationalised banks are paying significant bonuses t...Read More
SNP alarmed at Queen's speech
Alex Salmond today listened to the Queen's speech with initial interest after speculation that the Labour Party would look to introduce further powers for the Scottish parliament. However, in the event the Queen (who’s speech was written by Gordon Brown) only made fleeting reference to Scotland and other devolved parliaments with the indication there would be no major changes between now and the...Read More