Former Bank of England deputy governor confident on UK economy
Sir John Gieve, the former deputy governor of the Bank of England, has taken part in an interview in which he states that he believes that the UK economy is still on the road to recovery and UK base rates will have to increase in the short to medium term. Like one lone member of the MPC he believes that the UK economy will not fall into a double dip recession and indeed he is against reintroducing the quantitative easing programme due to "diminishing returns" on this enormous investment.
In a rare sign of common sense with regards to the UK economy, Sir John Gieve has compared the situation to years gone by when economic downturns have been accompanied by doom and gloom. There are very few recessions in the past which have not attracted talk of nightmare scenarios towards the end only to find that underlying strength comes through.
There are so many different opinions and comments regarding the UK economy that it is very difficult to make your own mind up. On one hand we have the ongoing suggestion of a double dip recession while on the other many prominent economists believe that the UK economy is set for future growth in the short, medium and longer term.
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