In response to the news that the Bank of England has downgraded its forecast for economic growth by 0.9% for next year, governor Mervyn King was in charge of the Bank under a Labour government that regularly produced inflated growth figures.
If he had challenged them then he would not be repeatedly revising them downwards now.
It should be set in stone that if inflation stays above the official target of 2% for a certain period of time interest rates will go up.
While this is not the case the target means little and simply creates uncertainty in financial markets.
You can’t force banks to lend if they don’t want to. It’s just rhetoric from the government and even if it isn’t, by the time it is legislated for the coalition will have fallen apart at the seams and the Liberal Democrats will have been swallowed up by the Tories.
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