Outgoing BoE Governor Mervyn King is expected to dispel some clouds over the UK economy as he is due to present his final forecast. Analysts are strongly convinced that Mr. King will indeed share news indicating that there are signs of a blossoming recovery which is so highly anticipated. Certainly, a delicate taste of optimism would be a beautiful envoy of his service at the Bank of England. Truth be told, Mark Carney, who is going to take the helm from Mervyn King, will have anyway a hard nut to crack as the UK economy is still far from being in the perfect shape.
Suspense is slowly increasing as BoE chief Mervyn King is due to present his last outlook for the UK economy on the 15th of May. What might be surprising for some, he is widely expected to bring some good news dispelling clouds over the UK economy after presenting so many of depressing growth outlooks since the beginning of the global financial crisis.
Many analysts and institutions are convinced that the Bank of England is going to present the forecast which will be a little more optimistic than the previous ones. After all, the last forecast of BoE chief Mervyn King will be announced after observing signs that the UK economy is finally getting better.
In addition, analysts believe that the forecast, which is due to be presented by BoE chief Mervyn King, will include lowered inflation projections. Interestingly, according to some estimates, analysts expect the Bank of England to revise down inflation to roughly 3.0 percent, compared to approximately 3.2 percent projected three months ago.
Furthermore, many analysts are convinced that the Bank of England will revise up its outlook for 2013 and 2014 and this step will without a doubt install optimism. Howard Archer, economist at HS Global Insight, underlined: “Outgoing Governor Sir Mervyn King could actually have a rare parting present of being able to deliver a report that does not contain higher consumer price inflation forecasts or lower GDP (gross domestic product) growth projections.”
Mark Carney - successor
Mervyn King has spent approximately 20 years at the Bank of England and his service without a doubt might be described as long and faithful. After serving as the Governor of the Bank of England for around 10 years, he is due to step down at the end of June, making room for his successor. Mark Carney, former Governor of the Bank of Canada, is to replace him and without a doubt he will have probably hard time to fill King’s shoes. Certainly, he will have to face increasing pressure as Mervyn King has been widely criticized for his reactions and steps after the beginning of the global financial crisis.
The fact is that the Mervyn King’s successor will have to face high hopes as British people are just fed up with the austerity measures and tough economic conditions. Indeed, since the beginning of the global financial crisis, BoE chief Mervyn King has been struggling to put the UK economy back on the growth track. It seems, however, that Mark Carney will inherit the UK economy in more or less better shape as GDP surged around modest 0.3 percent in the first quarter. The question is what Mark Carney will do with the Mervyn King’s heritage.