Left side advert image
Right side advert image
Super banner advert image
Subscribe to Print Monthly's RSS feed

Enter your email address here to sign up for our weekly newsletter

Blog Post By Brendan Perring

An economic Everest

ssss
Upswing, bounce-back, and on-the-mend are all words used by the UK’s illustrious leaders to describe our economy. These confident words are also seeing the banks at least think about releasing their death-like grip on lending to businesses.

This is all very rosy timing for the man holding the purse strings of the central bank, Canadian-born Mark Carney.

Taking to his five-year post in July, the economy does seem to have turned a corner, and with hopefully good judgement he has decided to keep interest rates low to ensure continued growth—at least until unemployment drops below the 7 percent threshold.

Add to this a summer that can honestly be described as decent and it seems our little island is firmly setting its sights on the sunny side of the economic street.

This is just one of the hundreds of influential balls that Carney has to juggle, each needing to be kept in the air with pinpoint timing to keep the UK’s growth on track

This positivity however does paper over some more troubling facts. The first problem circles around official interest rate figures. Carney has pledged to keep them at 0.5 percent until the unemployment figures drop by 750,000, helping to avoid speculation from investors. This is because if investors suspect a rate rise, it causes a knock-on effect that ends with interest rates rises on mortgages and company debt. This serves to slow down lending and decrease the amount of capital companies, such as those in the print industry, have to invest.

This is just one of the hundreds of influential balls that Carney has to juggle, each needing to be kept in the air with pinpoint timing to keep the UK’s growth on track.

We are still in the foothills of economic recovery, and with 11.5m still out of work, manufacturing still 10 percent below its 2008 peak, lending to firms still 32 percent below peak—when adjusted for inflation, and business investment down 34 percent over the last five years,  it seems there is still an Everest to climb.

I hope you have good strong boots and some oxygen Mr Carney.
xxxx
Print printer-friendly version Printable version Send to a friend Contact us

No comments found!

Sign in:

Email 

or create your very own Print Monthly account  to join in with the conversation.


Top Right advert image
Top Right advert image

Poll Vote

Has the pandemic affected you?

Top Right advert image

Most Commented

    No blog details found!

Recent Comments

    No blog details found!