Arab Today, arab today britain set for more stimulus as inflation retreats
Last Updated : GMT 21:46:51
Arab Today, arab today
Arab Today, arab today

Britain set for more stimulus as inflation retreats

Arab Today, arab today

Arab Today, arab today Britain set for more stimulus as inflation retreats

London - AFP

British annual inflation dropped in December by the biggest amount in more than two years, official data showed on Tuesday, heightening the prospect of more stimulus from the Bank of England. The Consumer Prices Index (CPI) slowed to a rate of 4.2 percent in December from 4.8 percent in November, the Office for National Statistics (ONS) said in a statement. The drop was equal to the decline in the annual rate between March and April 2009, when Britain was mired in recession. The British economy clawed its way out of the downturn in the third quarter of that year. The ONS added Tuesday that inflation was pushed lower last month by the falling cost of clothing, gas and petrol, with further downward pressures from heavy discounting by retailers in the run-up to Christmas. Economists said news of slowing inflation would ease pressure on cash-strapped consumers and help persuade the Bank of England to pump out more emergency cash into the weak British economy under quantitative easing. \"We expect the Bank of England to deliver another £50 billion of QE in February with another £50 billion likely to follow in the second quarter,\" said Howard Archer at consultancy IHS Global Insight. The BoE\'s Monetary Policy Committee (MPC) last week voted to leave interest rates at a record low 0.50 percent and maintain the central bank\'s stimulus programme amid fears the eurozone debt crisis was harming Britain\'s fragile economy. The bank opted against changing its QE programme of £275 billion (323 billion euros, $432 billion), but the scheme remains under review. Under QE, central banks create new cash that is used to purchase assets such as government and corporate bonds in the hope of giving a boost to lending and economic growth. However, some economists say that QE stokes inflation. With inflation falling, economists say the time is right to add more stimulus. \"Today\'s data indeed will provide some relief to MPC members who are in favour of more QE, as it suggests that inflation will come down sharply -- as they expect -- in the near term,\" said ABN Amro economist Joost Beaumont. \"Moreover, the drop in core inflation signals that weak economic conditions dampen underlying price pressures.\" The Bank of England\'s main task is to use monetary policy as a tool to keep annual inflation close to a government-set target of 2.0 percent. The bank predicted in November that the annual inflation rate would fall gradually throughout 2012. Meanwhile fears are growing that the British economy is sinking back into recession, according to two highly regarded forecasting groups, as the recovery is paralysed by the eurozone sovereign debt crisis. Both the Ernst & Young ITEM Club and the Centre for Economics and Business Research believe that British gross domestic product (GDP) shrank in the final quarter of last year and will fall again in the first three months of 2012. The technical definition of a recession is two successive quarters of contracting economic output.  

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today britain set for more stimulus as inflation retreats Arab Today, arab today britain set for more stimulus as inflation retreats

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today britain set for more stimulus as inflation retreats Arab Today, arab today britain set for more stimulus as inflation retreats

 



Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today Zainab Fadel Oglu designs “Shakerin” mosque

GMT 12:13 2017 Thursday ,11 May

Zainab Fadel Oglu designs “Shakerin” mosque
Arab Today, arab today Seeks to move past rift with Israel

GMT 08:00 2017 Monday ,08 May

Seeks to move past rift with Israel
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Mozambique's gas boom dream under threat

GMT 16:29 2017 Monday ,08 May

Mozambique's gas boom dream under threat
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Jaguar displays XF Sportbrake line

GMT 14:36 2017 Monday ,08 May

Jaguar displays XF Sportbrake line
Arab Today, arab today BMW sees forecasts in reach

GMT 09:04 2017 Thursday ,04 May

BMW sees forecasts in reach
Arab Today, arab today Climate science: Bad news gets worse

GMT 08:48 2017 Saturday ,06 May

Climate science: Bad news gets worse
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday