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.
IMF warns of potential slowdown in 2010
Despite increased optimism with regards to the worldwide economy and a potentially recovery in 2010, the International Monetary Fund (IMF) has today reiterated that while the worldwide economy may well be on the verge of a recovery, it is still "highly vulnerable" to further shocks. While admitting that "remarkable progress" has been made over the last few months the IMF is of the opinion that the...Read More
Oil prices continue to rise
Despite assumptions by governments such as those in Japan that the price of oil will fall further in the short to medium term, the exact opposite has occurred this week. Even though confidence in the US economy has fallen significantly over the last few weeks, recent figures from the US government suggested that initial indications of a fall in the US economy may have been overdone. This has force...Read More
Further woes on the high street as USC goes into administration
The UK high street has received more bad news today with the announcement that USC, the fashion retailer, has gone into administration. This is yet another well-known face to the growing list of administration casualties in the UK as the Christmas festivities come to an end. We are now seeing names appear which have not been mentioned over the last few months which highlights the sharp decline in...Read More
Can We Trust MPs To Look After Our Finances?
Over the last few months there has been a ground swell of support amongst MPs to increase their salaries to take into account a whole host of expenses which they look set to lose in the short term. There has even been talk of MPs being paid a bonus for attending the House of Commons, something which is totally unheard of in the private sector. So can we trust MPs to look after the public purse w...Read More
MP committee looks at North sea oil exploration
In light of the Gulf of Mexico disaster a committee of MPs will review the UK government's decision to ignore calls for a moratorium on new drilling exploration in the North sea. While there is no doubt that lessons need to be learned from the Gulf of Mexico problem, which has seen the BP share price collapse, many believe that safety measures in place in the North sea are more than adequate for t...Read More