BoE’s King said in his key policy speech yesterday that ‘significant’ stimulus is currently appropriate, and that the Euro-area problems will slow the pace of the UK’s recovery. He also noted that the fundamentals of the UK economy remain strong and the UK economy is at risk of stalling without stimulus. (Sources/Express) BoE’s King also added that Inflation has peaked and will begin to fall over coming months.
Moody’s said yesterday evening that the UK economy is to grow by less than 2% in both 2011 & 2012 and the UK unemployment rate is not expected to fall materially below 8% in 2012. (Sources) Moody’s also said they don't see UK policy interest rates to increase until the end of 2012.
David Cameron is facing his biggest Conservative rebellion since becoming Prime Minister after MPs called a Commons vote next week on whether Britain should have a referendum on leaving the European Union. (Independent) Senior Tories warned last night that the party's MPs will be under enormous pressure to defy Mr Cameron on 27 October by voting in favour of a referendum.
The Bank of England’s moves to stimulate the economy by purchasing gilts may raise the liabilities of company pension schemes by as much as GBP 25bln to GBP 30bln, according to the outgoing chairman of the National Association of Pension Funds. (FT- More)