Bank of England Bearish on UK Economy

Bank of England Bearish on UK Economy.

Bank of England governor Sir Mervyn King has commented about the short-term prospects for the global economy.  He also commented that he had been struck by how much the situation had changed in the past six weeks.  Sir Mervyn said he was particularly concerned about the worsening situation in Asia and other emerging markets.  

His comments followed official data showing the government borrowed more than expected in May.  Excluding financial help such as bank bailouts etc, it borrowed £17.9bn, compared with £15.2bn in May 2011.  A 7% fall in income tax receipts contributed to the rise in borrowing.  Whether the Bank of England can help the situation in Asia and other markets is another topic.