Mervyn King plays down the threat of inflation
Mervyn King, the governor of the Bank of England, has this evening played down the threat of inflation in the UK suggesting that inflation is just as likely to under shoot its target as to overshoot. This is the first major speech from Mervyn King since August and would appear to suggest, just prior to the issue of October MPC minutes, that there is some debate within the committee as to the direction of the UK economy.
Mervyn King has many months suggested that UK inflation is not a reliable measure of economic activity and the underlying strength of the UK economy. He has for some time believed that inflation will fall back to within the banks 2% target rate in the short to medium term without any major action from the authorities. Indications that the UK economy is beginning to weaken, after a period of relative buoyancy, would seem to support this belief although so far the figures have refused to fall into place.
The Bank of England is beginning to give the impression of a body which is frustrated by the relative strength of inflation despite numerous attempts to talk down the threat of inflation in the UK.
Couple plan cut-price 'credit crunch wedding'
A credit crunch-hit Devon couple have not let the financial crisis derail their wedding plans.Instead, Christopher May and Odette Fenwick will go ahead with the ceremony next weekend on a budget of just £500, the Daily Mail reports.The tight-fisted twosome are spending just £40 on the buffet, while 19-year-old Odette's wedding dress is setting her back just £52.A bargain bucket £43.50 civil ce...Read More
Kraft Foods looking to create jobs at Cadbury
Despite headlines over the last few days suggesting that Kraft Foods would introduce a cull of jobs at Cadbury in the UK it seems that the company has very different plans. It has been revealed over the weekend that Kraft Foods is actually looking to create more jobs in the UK in the medium to longer term after assessing the situation and cutting out any synergy savings in the short term. Wheth...Read More
General Motors decides to keep Vauxhall and Opel
Despite months of negotiations with various investors, General Motors has decided to retain ownership of its GM Europe division which includes Vauxhall and Opel. The Vauxhall operation in particular is vital to the UK economy with some 5000 jobs hanging on the outcome of this wrestle for ownership which is only that a very early stage. So what exactly is going on?
With over half of...
Who is in control of the UK economy?
When Gordon Brown was Chancellor of the Exchequer the Prime Minister at the time, Tony Blair, was often kept in the dark regarding Treasury policies and budgets. However, now that Gordon Brown is prime Minster of the UK government it seems that he has more influence than ever before over the Treasury and Alistair Darling has been under pressure for some time. But is Alistair Darling starting to fi...Read More
G20 worldwide rescue package starts to unravel
Only a few months ago Gordon Brown was on top of the world after leading his fellow at G20 leaders towards a $1 trillion global rescue package to "save the world". Not only was Gordon Brown the flavour of the month but literally everybody in Europe and beyond was following his spend, spend, spend solution to the recession like lemmings. However, things have now changed!
While we sti...