Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

MPC warns on 'substantial' headwinds after King's rallying call to Cameron

MPC warns on 'substantial' headwinds after King's rallying call to Cameron

The Bank of England has warned of the 'substantial headwinds' that continue to stand in the way of the UK's recovery, after its governor Mervyn King urged the government to do more to stimulate growth.

Following surprisingly resilient employment data, the Bank released the minutes from its latest monetary policy committee (MPC) meeting and raised concerns about the hurdles blocking Britain's return to economic strength.

The growth in household and real incomes has remained choked and there has been a significant drag from fiscal consolidation, the committee said.

On Tuesday, King (pictured) said the recovery had been 'disappointingly slow' and in the MPC's minutes the Bank went into more detail about the difficulties the UK faced.

'The existence of a significant current account deficit at a time of subdued activity and spare capacity suggested that the sterling real exchange rate might be above the level compatible with the necessary rebalancing of the economy,' they said.

There was also little in the way of news to tempt the MPC to alter its inflation outlook, and felt it was too soon to consider the impact of further stimulus.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Nick Hayes: finding good bonds in negative yield world

Nick Hayes: finding good bonds in negative yield world

Why do some bonds offer 'negative yields' and how do you avoid them? Nick Hayes of AXA Investment Managers explains.

Play Neil Gregson: gold is prettiest in ugly contest

Neil Gregson: gold is prettiest in ugly contest

The JP Morgan Natural Resource fund manager talks about the prospects for gold with plenty of uncertainty in the global economy.

Brewin's Gutteridge & Foster talk property with Standard Life's Baggaley

Brewin's Gutteridge & Foster talk property with Standard Life's Baggaley

Gutteridge and Foster discuss UK commercial property with Jason Baggaley, manager of the Standard Life Property Income investment trust

Your Business: Cover Star Club

Profile: Creechurch Capital’s CEO on going the extra mile in a crowded market

Profile: Creechurch Capital’s CEO on going the extra mile in a crowded market

Growing a business is the main aim of many company owners but managing that growth in a controlled way is just as important

Wealth Manager on Twitter