The Bank of England recently warned that economic recovery could be slow.
That much is not in dispute. The banks and government of the UK have seen to that (thanks by the way).
But when and how a recovery will take place is still very uncertain and I’m not an expert on the subject so I can’t answer the question of why it is uncertain.
B of E thinking behind future economic growth is saying: GDP growth could be anywhere between -1% and 5.5% by the end of 2012.
The UK economy could still be declining in 3 years time? Did I read that right?
Or, it could be growing at a healthy rate of 5.5%
So which is it and why is the thinking so vague?
What else lies beneath the murky waters of debt, house prices, unemployment, increasing interest rates, low consumer confidence and quantitative easing that could yet bite the UK’s backside while it attempts to paddle to the safety of the shore and begin the slow trudge out of the wet sand onto a bright sunny beach of a future?
Well isn’t that lot enough?
The fact is we are still in the middle of a very big mess.
Some banks are back to paying huge bonuses and the FSA has decided to step back from the argument. Why? It’s vulgar of banks to charge their customers high interest rates (compared to the base rate of 0.5%) and bank charges so they can continue to live the life of Riley and ‘re-balance their books’.
Why are customers suffering and the executives grinning when the banks got themselves into this mess?
And why is the regulatory body not doing enough about it?