Is The Bank Of England Looking Too Far Ahead?
As the Bank of England continue to attack inflation and resist growing calls for interest rate reductions to kick start the economy there is a growing belief that the Bank is looking too far ahead when there is real short term danger. While it would be foolish to ignore inflation, there is a growing opinion that by affectively ignoring the economy in favour of the fight against inflation, the short term outlook for the UK is much worse than it should be.
Unemployment is starting to rise, consumer debt levels have never been higher and the high street is under real pressure with more companies in serious financial difficulty. Consumers are crying out for help and assistance, with the property market proving to be a particular headache. There is no doubt that a reduction in interest rates would help the economy, but weaken the fight against inflation, but many analysts are now beginning to wonder whether inflation should take a back seat for the short term.
The last couple of Bank of England interest rate meetings have been fairly firm in their resistance to further interest rate reductions, but as more houses are repossessed, more consumers fall into serious financial difficulties, will the calls for help be ignored once more?
Share this..
Related stories
The plot thickens at Cadbury
It has been revealed that billionaire activist investor Nelson Peltz has reduced his stake in Cadbury at a time when most "activists" are looking to increase their exposure to the company. The sale of 3.5 million shares on Tuesday between 805p and 812.5p would appear to indicate that some investors believe the share price has pushed too far in the short term when considering the bid on the table a...
Read MoreCompany fraud on the increase
In a worrying turn of events it has been revealed that a record number of company directors from insolvent companies have been disqualified for financial crime. It seems that not only are the scammers and the fraudsters on the increase, but corporate embezzlement and other similar activities have mushroomed over the last few months. As more and more directors and employees become more and more des...
Read MoreFSA reveals traffic light warning system
As the FSA (Financial Services Authority) continues to reinvent the wheel, i.e. the UK regulatory system, a rather bizarre traffic light warning system has been revealed. The FSA wants to introduce a colour-coded system, very similar to the one in UK supermarkets, which would see the colour on a financial package reflect its perceived risk element. Mortgages, pensions, insurances and other investm...
Read MoreUK GDP Contracts, as Triple-Dip Threatens
The UK economy shrank by 0.3pc in the last four months of 2012, making the possibility of entering into recession for the third time since 2007 all the more likely. The Office for National Statistics (ONS) said that the fall in GDP was most likely down to a reduced output from the North Sea and manufacturers. This comes as a massive blow to the coalition government, who just three months ago we...
Read MoreUK unemployment rises to 2.4 million
UK unemployment is now at its highest level since 1995 with over 2.4 million people now out of work. Between April and June 2009 the jobless number increased by 220,000 with 7.8% of those available for work not able to find employment. While the exact figure is 2.44 million many people expect this to increase to well over 3 million in due course before eventually falling back during the next coupl...
Read More