What has gone wrong between the Bank of England and the UK government?
As the Bank of England and the UK government continue to sing from very different hymn sheets there are serious concerns in the UK financial markets that all is not well. Cracks started to appear just a few days ago at the Mansion House speech when the UK government took the opportunity to announce a number of significant changes to the UK regulatory system. These changes appear to have been crystallised without any input from the Bank of England and indeed the Bank of England did not appear to be aware the announcement was due to be made.
As a consequence there are now accusations in the wider press that the Bank of England appears to be siding with the Conservative party in readiness for what many believe will be a new Conservative government. While the Bank of England and the Conservative Party have refuted such allegations the distance between the UK government and the bank continues to grow. In order to rescue the UK economy in the short to medium term, all parties and all participants in the financial markets need to be pulling in the same direction.
An immediate improvement in the relationship between the various parties is a vital element of the ongoing rescue of the UK economy.
Share this..
Related stories
Begbies Traynor Sees Insolvencies On The Up
While the corporate insolvency experts Begbies Traynor may have reported a fall in 2007/2008 profits to £5.7 million it seems that the worse the economy gets in the UK, the better the environment for their services. Even though the fall from a £8.5 million profit last year to £5.7 million this year was disappointing, the company did comment that this had been one of the quietest periods in the...
Read MoreUK government agrees £150 million payment for FirstGroup
The UK government has agreed a further £150 million "investment" of UK taxpayer funds into the FirstGroup travel operation. This is the U.K.'s largest transport group with a particular interest in the UK rail network via its two franchises recently acquired from the government. It may not be well known, but the UK government has continued to subsidise these franchises despite the fact they are no...
Read MoreRDR – Concerns over Advice Gap
There are increasing concerns over the effect the Retail Distribution Review (RDR) will have on mid-market clients seeking financial advice, as many believe they will be simply priced out of the market. There are two points to be considered when looking at mid-market clients; their value to Independent Financial Advisors (IFA’s), and their willingness to pay upfront fees for financial advice....
Read MoreIs confidence in the Irish economy misplaced?
The Irish economy has been very much in the news over the last few weeks and months with the collapse of the financial sector, significant government cost-cutting and various altercations with unions. However, there is a general feeling that the economy is on the verge of a turnaround with the Irish Prime Minister, Brian Cowen, suggesting that a return to rapid growth could happen as early as 2010...
Read MoreAlistair Darling warns G20 about pulling out too early
Alistair Darling has warned his fellow G20 members that the financial stimulus put in place during the depths of the ongoing worldwide recession need to remain for the foreseeable future. Despite the fact that the US, Germany, France and Japan appear to be pulling out of the recession he is concerned that an early end to the fiscal stimulus programme could plunge the world economy back into recess...
Read More