Pre-Election Politics Dictate the Bank of England's Economic Policy
King, Stephen, The Independent (London, England)
Contrary to popular opinion, the UK gilt market - the market in government IOUs - has not yet collapsed, despite the ongoing increase in national debt. Nevertheless, following Alistair Darling's pre-Budget report, the gilt market has had a rather unpleasant wobble.
A few months ago, investors were mostly worried about the solvency of banks; today, their concerns have shifted to the solvency of governments. Reflecting this, gilt yields have risen, alongside yields on, for example, the Greek Government's bonds.
The pre-Budget report offered absolute clarity in only one respect: despite all the headlines about bonuses and bingo, the main decision was simply to …
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Publication information: Article title: Pre-Election Politics Dictate the Bank of England's Economic Policy. Contributors: King, Stephen - Author. Newspaper title: The Independent (London, England). Publication date: December 14, 2009. Page number: 38. © 2009 The Independent - London. Provided by ProQuest LLC. All Rights Reserved.
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