Britain in ‘deep recession’, warns King

But wait! Get this from the article:

“The Bank of England is prepared to cut interest rates below 1% and use “unconventional measures” to dig the economy out of the “deep recession” that it failed to spot six months ago, the governor of the Bank of England said today.”

and this

The governor added that the UK was caught up in a synchronised global downturn. “Restoring both lending and confidence will not be easy and will take time,” he warned. “

But

“[…] the Bank was expecting growth to bounce back in 2010 and be at 3% a year by the end of the year.”

So, we’re in trouble. We’re in bad trouble. Things are so bad we’re ready to try things we’ve never tried before and things that frankly are way out there in economic theory too.

But next year GDP growth will rebound to 3%

Considering that UK GDP was moving at about 3% at the peak of speculation in 2007,  it would appear that things are not so bad after all. Apparently, we are about ready to re-absorb into the economy all the workers that have been made redundant in the past twelve months and, too, all the companies that have gone bust will promptly be replaced and will, within the year, reach a level of activity of the companies that went bust.

Honest. That’s what Mervin King is saying. You read the article.

http://www.guardian.co.uk/business/2009/feb/11/inflation-bankofenglandgovernor

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One Response to “Britain in ‘deep recession’, warns King”

  1. guidoamm Says:

    … and then again… the deputy gov of the BOE thinks differently…
    http://business.timesonline.co.uk/tol/business/economics/article5748992.ece

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