8.11.2011 Leave a comment
The chancellor used his emergency statement to parliament to say that recent events in the global economy had “vindicated” the government’s deficit reduction programme, putting in a bullish performance after the Bank of England downgraded its UK growth forecasts for the fifth time this year.
George Osborne made the second of two emergency government statements, speaking after nine days of economic upheaval and one day after Bank of England governor Sir Mervyn King warned of more economic “turbulence” ahead, saying “headwinds were becoming stronger by the day”.
In his statement, Osborne acknowledged this squall of bad economic news, saying the FTSE had fared badly in the past month. “The huge overhang of debt means the recovery will be longer and harder than we had hoped,” he said.
“This is the most dangerous time for the global economy since 2008, and we should be clear about that.”
But he sought to turn events to his advantage, telling parliament the UK had become a “safe haven” for stock markets in recent days, with the unpredictability of stocks making an investment in UK bonds more attractive. Referring to recent market turbulence, he said: “The market for our government bonds has benefited.”
- George Osborne cuts short holiday to deal with stock market crisis (guardian.co.uk)
- Osborne concedes ‘longer’ recovery (mirror.co.uk)
- Osborne updates MPs on market chaos (mirror.co.uk)
- Shares hitting le skids again (thesun.co.uk)
- Osborne to address MPs on economy (bbc.co.uk)
- UK Treasury chief seeks to calm slow growth fears (sfgate.com)
- Osborne defends UK austerity plan (bbc.co.uk)
- When will interest rates rise? (moneyexpert.com)
- UK Treasury chief seeks to calm slow growth fears (seattletimes.nwsource.com)
- George Osbourne to update MPs on market chaos (independent.co.uk)