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.
Retailers optimistic for September
As we approach the end of the month, and await retail sales figures for September, a report by the CBI would seem to suggest that on balance 39% of UK retailers expect sales to be higher rather than lower over the next three months. When you consider recent figures from the CBI survey as well as the economic backdrop and recent comment in the financial press, a net figure of 39% is a very strong s...Read More
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 need...Read More
Factory gate price rise leads to fear of inflation
Factory gate prices in the UK rose by 0.9% in March compared to February, nearly twice the level forecast by analysts. Even though the vast majority of the increase in factory gate prices can be laid fairly and squarely upon the price of oil there are fears that further oil price increases could lead to an increase in inflation which could have disastrous consequences for the UK economic recovery....Read More
Is it time to nationalise Royal Bank of Scotland?
The UK government appears intent on throwing billions upon billions of pounds towards the Royal Bank of Scotland with other financial operations such as Lloyds Bank apparently been left in the lurch. For some reason the Royal Bank of Scotland seems to be taken precedence over everything else in sector and there are serious concerns that too much focus is being placed upon the once leading Scottish...Read More
Human error 'costing businesses a fortune'
Businesses are losing millions to fraudsters because of human error, a survey by the Department of Trade and Industry (DTI) has revealed. The survey of 1,800 people found carelessness with passwords is the biggest risk to computer network security which criminals are taking advantage of. Just over one-third of people wrote down or stored their password or security information on their computer.Nea...Read More