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Thursday, 19 June 2008 |
 there may be trouble ahead by autotelic Last night Mervyn King the Govenor of the Bank of England sombrely announced to a City audience at the Mansion House that the UK faced the "most difficult economic challenge for two decades". This admission , which starkly contrasted with Prime Minister Gordon Brown's bullish denials and assurances of just months ago , came on the same day that energy industry watchers here predicted that average energy bills this winter would be 40% higher really putting the squeeze on people already struggling to cope with runaway food, fuel and commodity prices.
Mr King's speech highlighted the Bank's concern about inflation, now feared to be approaching a rate of 4 or 5 % with no real guarantee that it wont keep rising, and stalled or even negative growth.
The Bank of Engalnd Govenor also acknowledged that the less well off were taking the brunt of the rapidly deteriorating global economic situation however the Bank's anti inflationary policies look set to create even more misery for those struggling with their mortgages and dont offer much help to Britain's weakening housing market and its also a safe bet that rising prices will triger pay disputes and industrial action from the UK's massive public sector workforce,
Adrian Coles, of the Building Societies' Association said it would be "the first time in about ten or twelve years that we've had no increase in real pay", prompting him to conclude that "people are really going to notice a difference in the economic environment". The UK is hurtling towards another Winter of Discontent.
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Last Updated ( Friday, 20 June 2008 )
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