Bank Of England Downgrades Growth Forecast

Bank Of England

Huffington Post UK   First Posted: 09/08/11 15:43 Updated: 09/10/11 11:12

The Bank of England downgraded the UK's growth forecast to 1.4% in 2011 on Wednesday morning, and warned Britons of a "sluggish" economy.

Mervyn King told journalists that inflation could hit 5% this year but would most likely fall in 2011.

He said the biggest risks to the UK economy came from abroad: "There is a limit to what UK monetary policy can do... monetary policy cannot influence inflation over the next few months."

King warned the outlook for the global economy had "deteriorated" in the wake of stock market turmoil in August.

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The Bank of England downgraded the UK's growth forecast to 1.4% in 2011 on Wednesday morning, and warned Britons of a "sluggish" economy. Mervyn King told journalists that inflation could hit 5% th...
The Bank of England downgraded the UK's growth forecast to 1.4% in 2011 on Wednesday morning, and warned Britons of a "sluggish" economy. Mervyn King told journalists that inflation could hit 5% th...
 
 
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HUFFPOST SUPER USER
carl cid inting
There are no tyrants where there are no slaves
21:16 on 10/08/2011
Austerity is great, isn't it? I still don't understand how Cameron and Osborne deluded themselves into thinking that austerity would be the solution to recession and joblessness. Or how they were able to convince enough voters to support them. Anyway, the chickens are coming home to roost. Eventually, Cameron and Osborne will realize their folly. Unfortunately, they will create a lot more damage before they're done.
11:59 on 10/08/2011
To me the problems are simple, we don't make anything anymore, we rely totally on number juggling to make money, over the last two weeks some people will have made a lot of money, stocks fell, worried speculators sold, big fish bought, stocks rise, money comes in, all a big scam perpetrated by those who can afford it.

Meanwhile government cuts spending on the necessities of the poorest to bail out or give tax breaks to the wealthiest, who are no longer interested in providing jobs as they don't like paying wages, so would rather juggle the figures. In the meantime, those suffering the brunt of cuts decide enough is enough and go out with the sole intention of getting their share by breaking in to businesses, taking what they want and destroying that property with fire to get rid of evidence.

Austerity works so well...for bankers who can steal that much more. needs an additional script regarding our politicos allowing it to continue unbounded by regulation, then again, they practically legalized theft when they themselves were caught with their fingers in the till, pretty much leading by example, and thats why we have looters on the streets, zero growth and a party of elites buying another yacht/island while setting up another tax free trust fund so they can have all the money. Isn't this greedy selfish society the pits.
16:06 on 10/08/2011
"we rely totally on number juggling to make money"

Yet you would like to to put an end to this without being able to suggest anything realistic to take its place.

"Meanwhile government cuts spending on the necessitie­s of the poorest to bail out or give tax breaks to the wealthiest"

I assume you mean the bail of the banks. The cuts are nothing to do with the bailouts. Labour built up spending based on taxes on bank profits but when the profits stopped the excessive spending was exposed. Now you decry bank profits which would help to reduce the annual budget deficit. And tax breaks for the wealthiest; what tax breaks have the Tories introduced?

"no longer interested in providing jobs"

You are under the same delusion as Republicans in the US that the wealthy will provide jobs. Do you mean they should take on servants?

"those suffering the brunt of cuts decide enough is enough and go out with the sole intention of getting their share by breaking in to businesses­."

Stealing trainers and mobile phones is a political act? You seem to approve of theft.

"Austerity works so well...for bankers who can steal that much more"

A much repeated but meaningless phrase. Pray tell how bankers "steal" and how this justifies looting and arson.

"Isn't this greedy selfish society the pits."

I'm afraid that even the Chinese have abandoned communism for capitalism. Perhaps you will find nirvana in North Korea.
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HUFFPOST SUPER USER
Patriot86
Compassion is the basis of all morality.
21:46 on 09/08/2011
Austerity works so well...for bankers who can steal that much more.
HUFFPOST SUPER USER
Trustfunded1
20:11 on 09/08/2011
The FED just said the economy was going to be bad until 2013

I would say a GDP downgrade was a shoe in by the BOE
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HUFFPOST SUPER USER
RobertoAlba
19:44 on 09/08/2011
Well, it seems that the entire world economy is going to hell.
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HUFFPOST SUPER USER
CabCurious
let's be honest
11:58 on 10/08/2011
It has been for years.

Our economies are increasingly less about industry and more about funny money management. We have bank and mega-corporate welfare on the one hand. And then we have failed, unaffordable social programs and entitlements on the other hand (ex. greece's retirement system).

It's a big pyramid scheme that we're continued to grow grow grow grow...

(as if mere, quantitative "growth" is what humans should be concerned with)
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2tango
Liberte Fraternite et Egalite
19:07 on 09/08/2011
Honestly I was thinking how England can financially pull up, when hardly have productivity.
even the mini-coopers all parts are made in Germany.
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consultingpbh
75th Ranger Regiment '66-'73
05:58 on 10/08/2011
Mini Cooper is owned by BMW. Jaguar is owned by Tata Motors of India. At one time the "Sun never set on the British Empire" maybe Moore's Law will apply to the fall of empires.
The observation made in 1965 by Gordon Moore, co-founder of Intel, that the number of transistors per square inch on integrated circuits had doubled every year since the integrated circuit was invented. Moore predicted that this trend would continue for the foreseeable future. In subsequent years, the pace slowed down a bit, but data density has doubled approximately every 18 months, and this is the current definition of Moore's Law, which Moore himself has blessed. Most experts, including Moore himself, expect Moore's Law to hold for at least another two decades. Inversly the time it takes for an empire to fall is halved every 18 months. It could be named the "Half life of an Empire" every 18 months the life expectancy of an empire is cut in half. The Soviet Empire lasted 1922-1991. First point of decline was Cuban missle crisis then failure in Afghanistan-1989. If the start of the decline of the US Empire was the end of the Soviet Empire the US should be toast by 2014.
75th Regiment
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3rd Brigade
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how goes the matrix
War is peace, Freedom is slavery, Ignorance is str
18:21 on 09/08/2011
recovery in jeopardy ...

boy oh boy these guys just keep commin up with the dry humor ..

what was the first clue -- the city burning?
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1Truthseeker
Explore,Discover,Create
17:28 on 09/08/2011
Put the screws on the working people to prop up the corporations and you further break the system you are trying to "save".
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1Truthseeker
Explore,Discover,Create
17:16 on 09/08/2011
There's austerity measures at work in a weak and faltering economy!
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WaveRhydr
DIEBOLD-WE VOTE SO YOU DONT HAVE TO
16:58 on 09/08/2011
Lets face it; Its a world wide depression. The Eurozone is all but gone, the US is on its a sz, and china cant continue without some country to sell to.
18:36 on 09/08/2011
China is keeping their currency artificially low to attract businesses, and they are living in an economic bubble, and if that bubble bursts, all hell is going to break lose.
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HUFFPOST SUPER USER
genialityofevil
22:00 on 09/08/2011
China is already having that problem, have been for a while. They've also got demographic problems in the medium-long term.
KungPowChicken
Moderate voice amongst the grunting
16:50 on 09/08/2011
The Obama Downgrade is spreading.
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19:30 on 09/08/2011
Which downgrade is that then? Caused by Obama was it? Do you know that the downgrade was caused by the "inability of Congress to function"?(I paraphrase S& P) And which joking political party is saying NO to everything?
All the info is there, just read S& P's report!!
Most of the problems in our financial systems are directly attributable to Thatcher and Reagan"s so called "freeing up" of our City financial systems.
God help us.
11:22 on 10/08/2011
Yup, Maggie has certainly cast a long, long shadow. The free-market drive has lead to us abandoning democracy and instead we now have a plutocracy.
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Meggie
Your micro-bio did not meet our guidelines.
16:08 on 09/08/2011
Austerity = no innovative ideas and downgraded workers.
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Trustfunded1
15:07 on 09/08/2011
This coincides with SPX charts

A day of plunge a day of stability to sell into then another day of plunge.

Todays rally is being sold into before FOMC and this bad news.
15:00 on 09/08/2011
I still don't get it. The outcome of cutting spending and imposing austerity measures can pretty well be determined beforehand. How does England or any other country, for that matter, or the IMF or the United States think that we're ever going to get the world economy going again by slashing spending during a time of recession. I'm looking around me and the people in my area are closing their wallets, hoarding their money, and refusing to spend while waiting for the axe to fall on things like Social Security, unemployment benefits, Medicare, private or public employment. This is a prescription for continue recession, if not depression, and still our politicians are pursuing this tact like it's the holy grail. This slash and cut madness while leaving the culprits untouched and the wealthy free from any tax burden is folly.
16:08 on 09/08/2011
So presumably your personal solution to "getting the economy going" is to borrow as much as you can and spend it. When the bank won't lend you any more get every credit card you can and spend even more.

If you applied your philosophy to your own life you would have the repo men at your door and you would be out on the street. Spending money you don't have isn't going to solve anything.
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WaveRhydr
DIEBOLD-WE VOTE SO YOU DONT HAVE TO
17:00 on 09/08/2011
Well, "1 fan", it would prolly pay you to listen to the guy with nearly 1600 fans, as others seem to agree that hes got something generally worth listening to.
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1Truthseeker
Explore,Discover,Create
17:26 on 09/08/2011
Your oversimplified perspective robs you of the ability to think outside your own box. You cannot compare a government to an individual. It is not about one size fits all.
The function of government has very little to do with what an individual would do. The responsibilities and obligations of government far exceed that of an individual.

The US government today has to borrow money because it is not collecting sufficient revenues from one major social component: Corporations! In addition, if the government had not relinquished its sovereign right to determine the amount of currency in circulation at any one given time to the Federal Reserve - a private corporation then the government would never need to borrow money. It's worth knowing how monetary systems function.
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WaveRhydr
DIEBOLD-WE VOTE SO YOU DONT HAVE TO
17:01 on 09/08/2011
I dont know where "your area" is, but its the same all over, I think. And yes, I agree, its crazy. I almost understand why repubs push the policies we have now, but never will I understand Obama getting on board with it.