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.
Right Wing Think Tanks Slams Northern Cities
A right wing think tank has slaughtered the cities of northern England even going as far as to suggest that those from the area should move to the south east of England to further their careers and improve their employment prospects. Can this be true? Or is this yet another example of the north south divide?
To suggest that literally millions of people should pack their bags and he...
Bank of England faces dilemma
Yesterday's confirmation that the Bank of England MPC expects to retain UK base rates at 0.5% for the foreseeable future was not a surprise for the UK economic arena. However, a report expected next week is set to show that while inflationary pressure in the UK is growing in the short to medium term, the economic recovery is stalling. Against this background the Bank of England faces a very diffic...Read More
Recession Watch : Political Polls
One of the first signs indicating the end of a recession is a return of support for the government of the day, i.e. the Labour Party. However, the situation in the UK is slightly different because of ongoing scandals regarding MPs expenses and the recent e-mail sage emanating from number 10 Downing Street. However, many political analysts believe that as and when the UK recession ends we should se...Read More
93% of public sector workers suffer from stress
10/06/2015 A survey from the UK newspaper The Guardian has found that 93% of people working in public services are stressed at work. The combination of growing workloads, longer hours, cuts to funding and feeling undervalued have left public sector staff stressed and under pressure. The survey monitored the well being of staff working in central government, local government, health, housing...Read More
Is the UK recession really coming to an end?
While there have been a number of comments and signals today which would indicate that the UK recession is coming to an end, why only last week did we see the Bank of England pour cold water on hopes for a short-term recovery?
Today we saw an upbeat statement from Bovis Homes and new figures regarding business confidence which appears to be as high as it has been since the beginning...