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.
Is Gordon Brown holed below the waterline?
Gordon Brown is this evening fighting for his political future after the revelation that Sir James Crosby, a man who Gordon Brown promoted to the position of deputy chairman of the FSA and installed as one of his close circle of economic advisers, may have fired a "whistleblower" during his time at HBOS when the employee suggested the bank was growing too quickly. Even though Sir James has taken s...Read More
CWU warns of more crippling strikes for UK post
The Communication Workers Union has today reiterated the fact that if talks do not resume after next week's planned strikes there will be further industrial action in the run-up to Christmas. While many people had expected a flurry of strikes as we approach the festive period, this is clarification that the union is starting to play hardball and looking for the UK government and Royal Mail managem...Read More
EBRD revises its forecast for emerging European economies
The European Bank for Reconstruction and Development (EBRD) has today reduced its forecast for GDP growth within the emerging European economies for 2010 and 2011. It would appear that austerity measures taken by various governments around Europe will have a major impact upon the short to medium term performance of economies and could indeed push some economies back into recession. The EBRD has...Read More
Is the UK on the verge of large scale industrial action?
There are rumours in today's financial press that UK unions are putting together a fund of up to £25 million which will be used to fight potential UK public sector service cuts if the Conservative party win the next general election. It is believed that the £25 million in question would normally have gone to the Labour Party but is now being withdrawn from Labour Party subscriptions to remain un...Read More
Will the UK economy really bounced back stronger?
Gordon Brown's suggestion that the UK economy will bounce back stronger than ever before has given some people hope in the UK but many are waiting for the proof behind the very upbeat forecast. The figures would suggest that the UK is currently weaker than it has been at any time in modern history and taxpayers and consumers are more concerned than ever before about the immediate outlook.