On Wednesday, February 10, Bank of England published a report on inflation, confirming the stabilization of the UK economy in the second half of 2009 and the prospects of gradual growth. This growth is supported by a significant softening of monetary policy, global growth and the low rate of pound sterling.
Economic recovery is influenced by several factors. Credit terms will be limited for some time and may become even more stringent when the company will seek to expand. The need to strengthen the financial condition of public and private sectors is likely to put pressure on costs. The degree of recovery is uncertain. "It is difficult to assess the impact of measures taken, when the economy is driven by others, significant and unusual strength."
The inflation rate significantly exceeded the target value of 2% in December and probably grew up in January under the influence of temporary factors. Perhaps inflation will remain high in the short run, and then falls below the target value. Nevertheless, the report noted that inflation forecasts "are unusually uncertain and subject to risks in all directions."
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