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.
Pawnbrokers benefiting from the ongoing economic recession
While in the eyes of many people pawnbrokers are seen as an old-fashioned business with very little relevance in the markers of today, the ongoing economic recession is starting to change the view of many investors. It has been revealed that business across the pawn broking industry has increased significantly as the UK recession continues to bite and more and more people become more and more desp...Read More
How did the situation in the UK get so bad?
While we hear about the doom and gloom surrounding the worldwide economy many people at home are wondering just how a once prosperous UK economy has fallen so sharply leaving many companies and people destitute. The once proud housing market is literally on its knees, the stock market is more volatile than ever before and the ruling Labour Party appear hellbent on fighting amongst themselves.
Sterling hits more trouble in the currency markets
The sterling exchange rate fell further today after a report by the Centre for Economics and Business Research suggested that UK interest rates could remain at 0.5% for another two years. There was also a suggestion that the sterling dollar exchange rate could fall to around $1.40 and the UK currency could potentially fall to parity with the euro.
Sentiment has turned sharply agains...
New wave of job cuts on the way
It has been revealed that advertising giant WPP and software company Sage are set to announce thousands of additional job cuts over the next few days. Many experts now fear that the employment market is entering the next phase of the economic downturn which could see hundreds of thousands of job losses announced over the coming days and weeks.
After the initial reaction to the econo...
Is OPEC looking to squeeze the price of oil higher?
Over the last few months the price of oil has been a major concern to governments around the world as inflationary pressure continues to grow and economic recovery in many areas of the world is put at risk. However, the price of oil is currently over $80 a barrel which is above and beyond the comfort of between $70 and $80 which many had assumed was OPEC's target. So why has OPEC yet to respond to...Read More