Don’t we all see the negative growth? In the last ten years my finances have contracted by 50% resulting in lowered purchasing power and living standard. 6:11AM BST 08 Aug 2012 The central bank will also downgrade inflation forecasts amid a weak economy in a double-dip recession that has been hit by the eurozone crisis and slowing domestic demand. Presenting his last report in May, he said the UK would not be "unscathed" by the eurozone "storm". Governor Sir Mervyn King is also expected to be asked about a possible interest rate cut from the current record low of 0.5pc. The Bank is expected to say in its August Inflation Report that the British economy will come to a standstill this year with virtually zero growth in 2012 as a whole, opening the door to more stimulus in the coming months. Just three months ago it was forecasting growth of around 0.7pc this year, as was the Government’s independent fiscal watchdog, the Office for Budget Responsibility. The Bank’s move is set to be the latest in a series of downgrades since the beginning of the year. Sir Mervyn is likely to highlight the risk to the UK economy posed by the eurozone’s crisis. “The Bank of England started the year with a glass half-full – looking for the economy to grow by more than 1pc on average,” said Alan Clarke, economist at Scotiabank. “However, halfway through the year it appears the glass has a rather large crack in it and that the glass half full is now virtually empty – with its GDP prediction for this year likely to be close to zero.” Sir Mervyn is also likely to say that falling oil and commodity prices and a faltering economy will pull inflation down faster than forecast. The Bank is expected to say annual inflation will fall below the 2pc target by the end of the year, from its current level of 2.4pc, easing the squeeze on household finances. “The only crumb of comfort for the Bank of England is that at least it can revise down its consumer price inflation projections as well as its GDP growth forecasts,” said Howard Archer, chief UK economist at IHS Global Insight. The MPC has persistently overshot its inflation target during the crisis, but inflation has fallen sharply since hitting a high of 5.2pc in September. However, lower inflation forecasts will leave Sir Mervyn and the rest of the Bank’s Monetary Policy Committee open to criticism for failure to back more economic stimulus at its August policy meeting on Thursday. The nine-strong MPC voted to leave interest rates on hold at 0.5pc and quantitative easing unchanged at £375bn, despite Britain’s ongoing double-dip recession. The economy contracted by 0.7pc in the second quarter, and although it is expected to improve in the second half of the year, it is unlikely to be enough to drive growth in 2012 overall. Sir Mervyn is likely to say the MPC will wait to see what initial impact the Government’s £80bn “funding for lending scheme” (FLS) has on the economy. Economists said the MPC will probably decide on whether to further cut interest rates and expand QE in November. By then, it will have had time to judge the FLS, Bank of England to slash growth forecasts to almost 0pc
The Bank of England is expected to slash UK growth forecasts to close to zero from the 0.8pc predicted in May when it releases its quarterly inflation report later today.
Wednesday 8 August 2012
There is nothing left to lift the stock market, our economy and manufacturing industry have been stuffed by taxation since the end of WW2. This has slowly destroyed our jobs putting ever more on the dole and it has ruined our Country!
I can see no recovery until we reopen our coal mines, and rebuild the Iron and Steel Industries. Social Security will fail sooner or later, we should cut it down, reduce our import dependancy with small home grown industries and farming and be self starters again.
Why not?
The EU! It failed years ago lets just bury it before the smell starts.
B
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