With the World Cup fast approaching it’s exciting conclusion, you don’t have to be a football fan to know this Blog is nothing to do with our fortunes in that competition for sure!
As I write this, the last 16 matches have just concluded with all 16 nations being able to say they truly “gave it a go” in 8 excellent matches (well, maybe Argentina aside, that is) whereas I don’t think we could say that about any one of England’s group games, as they whimpered out of the tournament.
Economically speaking, at least, England are on the Up (together with Wales, Northern Ireland, and Scotland collectively, of course)……latest GDP figures suggest we are growing at our highest rate since 2007, inflation has almost halved since the start of this year, and unemployment is now well below 7%…….all of which is creating an interesting dilemma for the Bank of England.
Mark Carney has now been in his role of Governor of the Bank of England for one year, and I think it’s safe to say the Press honeymoon period is over! Headlines on his first “birthday” in the role suggest “Rock Star Banker’s first year leaves Credibility Questions” (The Telegraph), only 12 months on from being described as “quite simply the best, most experienced and most qualified person in the world for the job” (George Osborne) – his task is perhaps even tougher than that of Roy Hodgson’s !!!
Ever since day one he has been keen to want to take a “gentle, gentle” approach with any interest rate rises so as not to shock the markets, but it now seems inevitable we are facing our first rate increase in 5 years very soon, and Mr Carney’s latest comments tend to point towards an expectation of rates around 2.5% by the end of 2017 (worth emphasising that means 5 TIMES HIGHER than the current rates!)
He has to find a way somehow to control an ever growing house price inflation, which is skewed significantly across the country, with a national interest not to harm the ever-delicate recovery of the general economy. Can he succeed where others have failed? Well, only time will tell. And if he doesn’t we can see one nasty solution in the future… Higher taxes! And none of us like that!!
In fact, now I think of it, give me Roy Hodgson’s job anytime ! (….not that the FA are ever likely to give that to someone called Graham Taylor again !!! )