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.
Will the British Airways employment changes be replicated elsewhere?
News that a significant number of British Airways staff have agreed to work unpaid for up to a month, take unpaid leave or move to a part-time basis has been welcomed with open arms by Willie Walsh, the chief executive of British Airways. The move is set to save the company around £10 million a year and further efficiency savings can be expected in the short to medium term. But does this change t...Read More
UK employment at record high levels
15/05/2015 UK unemployment continues to fall to record low levels, as the number of people out of work falls to 1.83 million. Official figures from the Office of National Statistics show that the number of people out of work between January and March fell by 35,000 and was the lowest figure in seven years. The total number of people in work rose to 31.1 million. The employment rate in the UK...Read More
How long will it take to repair the UK PLC balance sheet?
Over the last few weeks there has been one headline in the financial press and that is public sector spending and the massive cuts already announced by the UK government with more to follow. Many people have also been focusing upon the ever growing national debt in the UK which is now expected to top £1 trillion in the short to medium term. So how long will it take to repair the UK PLC balance sh...Read More
CBI survey signals consumer upturn
While the headline figures from the CBI's latest survey make excellent reading, with 44% of the 143 companies who responded confirming sales grew in the first half of April, there is more to the report than meets the eye. Immediately after the figures were announced it was also revealed that the timing of Easter this year may well have given early April sales a significant boost and the figures co...Read More
Confidence is the factor we need to monitor!
Over the last few months we have seen an array of contradictory economic indicators, many of which have been reviewed and adjusted at a later date, but at the end of the day is the situation regarding the UK economy any clearer? The simple answer to this is no. While retail sales will ultimately mark the end of the UK recession one of the main factors we need to monitor and review on a regular...Read More