Mervyn King warns of sharpest economic slowdown for 30 years
Mervyn King, the Governor of the Bank of England, has stepped forward with this most downbeat statement for sometime. He is suggesting that the UK will experience a downturn the like of which has not been seen for over 30 years having pinpointed the collapse in the banking system as the main culprit. This is by far and away the most serious and depressing report from the Bank of England for many years and one which is sure to be recognised by the investment market.
It looks as though the rescue package which was announced only a couple of weeks ago will take some time to filter through the system and the short-term impact could be minimal. Longer term the UK is well positioned for future growth although with national debts of over £500 billion there will need to be an increase in tax rates in due course.
It will be interesting to see how the UK government responds to this report from the Bank of England as there appears to be a widening gap between the two parties on the immediate direction of the country. There is also a suggestion that interest rates will "fall as far as they need to".
Share this..
Related stories
Unite union calls for strike vote
It has been revealed that more than 20,000 construction staff are to be balloted about potential strike action as the situation regarding the use of foreign workers in the UK comes to a head. This is something which has been ongoing for some time and caused significant distress for companies, workers, unions and the government over the last six months. The latest blow comes as talks between the Un...
Read MoreShould all women receive maternity leave even if they don't have children?
A UK think tank has today caused significant ripples in the UK employment market with the idea that all women should be offered "maternity leave" even if they do not have children. In a situation which is starting to get out of control, the UK equality movement is now calling for ladies in the workplace to be offered paid or unpaid leave from work which would effectively be their "maternity leave"...
Read MoreBank Of England hold UK base rates
As expected, the Bank of England MPC committee has today confirmed that UK base rates will remain on hold for the sixth consecutive month. This came as no surprise to the UK market, with many expecting the move, although there was a small surprise with regards to the quantitative easing program which has been ongoing for some time.
Many had expected the Bank of England to put on hol...
Gordon Brown's demise may herald a new era in UK politics
While he may not be on the rack quite yet the open revolt throughout the Labour Party has caused many to look beyond the current government and plan for the future. It looks as though Gordon Brown may well have presided over the demise and almost certain death of New Labour and allowed Old Labour to rise from the ashes like a phoenix.
We are now seeing more and more MPs stepping fo...
Is the UK car manufacturing industry finished?
Only last month we saw a 60% slump in the number of cars manufactured in the UK which adds further fuel to the fire of a declining industry over the last few months. Despite a number of attempts to obtain short-term capital injections from the UK government it would appear that the UK car manufacturing and car retail industries have been left to fend for themselves. Despite the fact that these ind...
Read More