Britain in uncertain state of recovery
(12 November 2009 – UK) A quarterly economic report released by the Bank of England says recovery from the recession is ‘highly unlikely’ amid ‘sharply’ rising inflation.
The central bank has released a report indicating that British interest rates would continue to remain around the record lows of 0.5 percent for some time now.
A spike in 12 month consumer price index inflation is expected before the end of 2009, but is also forecast to return to current levels around late 2010.
Consumer price index inflation fell to 1.1 percent in September, but is likely to rise sharply to above the two percent target in the near term, said the central bank.
Mervyn King, governor, Bank of England, has said that he believes that Britain is only just starting along the road to recovery.
Although the world economy has shown signs of recovery, global activity still remains significantly below pre-crisis levels and constraints on supply of bank credit will weigh on spending, the bank stated in its report.
A degree of economic slack is likely to persist over the forecast period, although its extent will depend on the strength of the recovery and on developments in supply, both of which remain highly uncertain, the Bank of England concluded.
A spike in 12 month consumer price index inflation is expected before the end of 2009, but is also forecast to return to current levels around late 2010.
Consumer price index inflation fell to 1.1 percent in September, but is likely to rise sharply to above the two percent target in the near term, said the central bank.
Mervyn King, governor, Bank of England, has said that he believes that Britain is only just starting along the road to recovery.
Although the world economy has shown signs of recovery, global activity still remains significantly below pre-crisis levels and constraints on supply of bank credit will weigh on spending, the bank stated in its report.
A degree of economic slack is likely to persist over the forecast period, although its extent will depend on the strength of the recovery and on developments in supply, both of which remain highly uncertain, the Bank of England concluded.
Subscribe