Mervyn King braves the TUC conference
Mervyn King, the governor of the Bank of England, today braved a very hostile reception from those attending the Trades Union Congress (TUC) where he was invited to talk about the UK economy and forthcoming budget cuts. While attempting to sympathise with those who are vehemently opposed to the proposed UK budget cuts he did reiterate the fact that a reduction in UK public-sector spending was needed to get the UK budget back in line. He also acknowledged that the UK banking sector has been bailed out by the UK taxpayer to the tune of billions of pounds while everyday businesses and the everyday population of the UK continue to struggle.
Interestingly he also commented on the fact that the Bank of England is ready to push ahead with a new austerity program if the economy shows signs of stalling, which is the surest sign as yet that the Bank is looking towards a re-introduction of quantitative easing. It would appear that the Bank of England is attempting to talk around the financial press, the unions and UK businesses with regards to quantitative easing which is almost certain to reappear in the short term. How much more money will be added to the £200 billion already spent on an earlier dose of quantitative easing remains to be seen.
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