Wednesday, November 11, 2009

Bank of England predicts slow recovery

Bank of England expects the gradual recovery of the national economy, drew attention to the need for control of bank assets, and predicts that the government would be obliged to balance the state budget in the coming years.
In addition, published today in the quarterly report on inflation projected increase in inflation, which in the short term will have to exceed the targeted level of 2%. Consumer prices will cause a temporary increase in VAT. Later, however, will naturally roll back prices.
The report also states that the depreciation of the pound sterling, which fell against the currency basket against the backdrop of recession, "will have a positive impact on the restoration of the UK economy."
According to the Bank of England, a weak national currency impact on reducing the volume of imports and help to overcome the fallen domestic demand. At the same time, a weak pound will benefit UK exporters in the world market.

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