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Bank to cut growth forecast to zero
homelessskilledworker
Posts: 1,664 Forumite
The Bank of England is to slash its growth forecasts close to zero as the double-dip recession deepens and the eurozone storm closes in on UK shores.
Governor Sir Mervyn King is expected to indicate no growth for 2012 in the Bank's quarterly inflation report, compared with 0.8% predicted three months ago and 2% a year ago.
Governor Sir Mervyn King is expected to indicate no growth for 2012 in the Bank's quarterly inflation report, compared with 0.8% predicted three months ago and 2% a year ago.
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Comments
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homelessskilledworker wrote: »The Bank of England is to slash its growth forecasts close to zero as the double-dip recession deepens and the eurozone storm closes in on UK shores.
Governor Sir Mervyn King is expected to indicate no growth for 2012 in the Bank's quarterly inflation report, compared with 0.8% predicted three months ago and 2% a year ago.
It's going from worse to worse to even worse, I work on the very simple premise
Strong economy = strong housing market
Weak economy = ....... Well!! you get the gist0 -
When the PIIS (no Greece) are 4 out of your top 10 trading partners you're going to struggle to grow your economy.0
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When the PIIS (no Greece) are 4 out of your top 10 trading partners you're going to struggle to grow your economy.
It seems clear now why the economy is struggling.
But to reduce growth from a 2% forecast to 0 in two short steps seems to suggest that BoE were unaware of the looming predicaments facing these countries.
Would that really be the case? Most of these countries have fundamentals to their woes. I haven't read of a shock event like PPI or money laundering damaging Spanish banks for example. Regional issues in Spain and their housing bubble have been well known however.
Are economic forecasts that limited?0 -
I doubt that too many people had great faith in the previous growth forecast."When the people fear the government there is tyranny, when the government fears the people there is liberty." - Thomas Jefferson0
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Well this still means that the BoE think the UK economy is going to grow by 1% in the second half of the year!
Likelihood of that? Any offers anyone?0 -
MacMickster wrote: »I doubt that too many people had great faith in the previous growth forecast.
Well apart from one or two deluded souls on this forum.0 -
shortchanged wrote: »Well apart from one or two deluded souls on this forum.
It really is all Emperors clothes. If they keep on willing it to grow it will..... Stiff upper lip and all that.
As most people knew it was unlikey to grow, we haven;'t really come out of recession for years apart from in a statisticians *** dream.
They do themselves no favours constantly talking things up in the end they look increasingly incompetent."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
GeneraliWhen the PIIS (no Greece) are 4 out of your top 10 trading partners you're going to struggle to grow your economy.
Yesterday, 12:34 PM
Still are. The UK is the 6th biggest exporter in the world.
For how long?"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
MacMickster wrote: »I doubt that too many people had great faith in the previous growth forecast.
I don't hold much faith in the one not even announced. It will still be over optimistic.0 -
The BoE has continuously failed on its capacity to forecast.
As Stephanie Flanders said on the radio this morning, they have been bullish with forecasts, but King has been extremely bearish on press conferences & speeches.
No mention of the squeeze on disposable incomes in Merv's speech so far.
It is clear that the government could step in and initiate a number of infrastructure projects in areas where the private sector has failed such as housing and power.0
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