Bank of England Governor Mervyn King has warned that “the nice decade is behind us” as inflation could hit 4% this year as the economic growth slows severely.
The gloomy governer spoke this morning of house prices falling and house prices to earnings ratio’s etc, but spoke as a man with little confidence, giving the impression that you and I, probably know as much as he does.
While the bank reported several weeks ago through it’s Financial Stability report that the worst of the credit crunch may be over, King suggests that the ‘Pain was only starting for households.’
The depression is likely to continue for everyone, with soaring fuel charges blamed for inflation growing at its fastest pace in six years last month, and today’s forecast likely to halt any chances of a further cut in interest rates this month.
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