Thursday, 10 April 2008
base optimism or economic with the facts?
I was passing the Bank of England in the City on Wednesday and noticed the news being filmed on the pavement. Interesting to hear a news outside broadcast in real life instead of from the television.
An ITN broadcaster was talking to camera about the gloomy IMF forecasts for the economy and the subsequent speculation whether or not there would be a further base rate cut Thursday. The rashbre central bet is another .25% reduction.
Our UK Chancellor Mr Darling says the UK's growth has been downrated less than everyone else and that is supposed to build our confidence.
When he goes on to say that UK economy could grow by up to 2.25% in 2008 and 2.75% the following year, he seems to be saying something at odds with the rest of the economists, who seem to be revising downward now to 1.6% for 2008.
Darling's statement predicts a range of 1.7%-2.25%, but the implication of the range and his statement of "optimism" are to direct thinking into to the 2%+ zone.
Of course it is great to have someone with such decisive visionary leadership skills managing our UK economy.