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.
It was made public that Mark Carney, the governor of the Bank of Canada, had been designagted as the new governor of the Bank of England. It is a surprising move, yet Britain decided to reach for a foreigner as it struggles with its troubled financial systems, which certainly needs to be reformed.
The month of July witnessed an unexpected rise in inflation, disrupting any hopes the British had of assisting the recession-ridden financial system of the country with greater spending power after pressures on prices had eased somewhat. But the situation was not able to affect any sort of expectation regarding further stimulus from the central bank at the moment.