Sometime back, the Bank of England had foretasted its growth to 1.2 per cent, which they have now cut back to 0.8 per cent. They are saying that till date the crisis of euro zone is a major threat to the recovery of the economy of UK. Sir Mervyn King, Governor, had to say that the effect of euro zone has still not got over, and thus, there is trouble on the head of the economy of the UK. They are saying that till date the crisis of euro zone is a major threat to the recovery of the economy of UK.
He also gave a confirmation that bank has already started doing planning in advance if there is any kind of break in the euro zone. In addition to this, the Bank also said that the rate of inflation is going to stay above the target of the government that is the target of 2 per cent which they have set in for around a year.
Sir Mervyn also has a presentation of the quarterly inflation report of the bank a few days ago. While talking in a news conference he said that one of the major threats to the economy of the UK is the threat from the side of euro area. In addition to this, there is still risk that a storm is coming towards the continent from this region.
He had to say that the country till now has seen a major global economic crisis, has also seen the most major downfall in the output of the world from the of 1930's, have also see the biggest banking crisis in the history of the country, in addition to a major financial deficit in the history when everything was peaceful along with being the biggest trading partner of the euro zone that got torn on its own. In addition to this, he also said that if we feel that we can keep the high hopes of sailing through the high seas along with keeping this inflation rate quite low around 2 per cent while also experiencing average growth cannot be possible at all. Apply now with one month loans @ http://www.onemonthloan.org.uk/ and get quick money for your urgent needs in crises.
Andrew Balls, who is the managing director of global investment firm Pimco in London, was of the view that it was quite a proper idea that Sir Mervyn along with other policy makers should make proper plans if Greece makes its exit from euro zone. Even they can make similar kinds of plans and if they do, then the region of Europe will be under a lot of stress as well as trouble.