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.
Standard Life announces 500 job losses
Edinburgh-based insurance and pensions giant Standard Life has today announced 600 job cuts over the next 15 months although the company did confirm that an additional 100 new posts would be created. The vast majority of the job losses, around 480, are expected to come from the company's Edinburgh offices with the remainder spread across the UK as a whole. Like so many financial companies in th...Read More
Does size matter in the UK retail sector?
With news that JD Sports may potentially look to merge with JJB Sports, many are starting to ask whether size matters on the UK high street in an attempt to secure safety in the medium to longer term. There seems to be a general misconception that it is only the smaller companies which are suffering when we have seen the likes of MFI, Woolworths and other major players in the UK high-street inform...Read More
UK Economy avoids triple-dip Recession
The UK economy avoided what would have been devastating news today, as first quarter growth of 0.3pc was reported, and a triple-dip recession avoided. A recession is confirmed when the economy experiences two consecutive periods of decline, and after a final quarter of 2012 growth figure of -0.3pc, any further decline would have officially seen the economy back in recession. The growth figur...Read More
UK government to cave in on banking bonuses
The UK government looks set to cave in on banking bonuses in excess of £1.5 billion for majority-owned Royal Bank of Scotland with the board of the bank threatening to resign if the UK government blocked the bonus pool. The head-to-head between Royal Bank of Scotland and the Treasury has given hope to other banking institutions which are under pressure to reduce their bonus payments in the short...Read More
UK may have to cut interest rates
Interest rates in the UK may have to be cut to stimulate economic growth, according to a new report.In its latest report on economic conditions in the UK, the Organisation for Economic Cooperation Development (OECD) claims that because of continuing upheaval in the financial markets could lead to economic slowdown in the future.The OECD had previously predicted growth of 2.5 per cent for the UK ec...Read More