ECB chief hints at rate cut and changes to QE stimulus programme,while Britain’s public finances worsen unexpectedly, giving George Osborne less room for manoeuvre at next week’s spending review and autumn statement 10.49am GMTWhile European Central Bank president Mario Draghi said this morning that the central bank stood ready to act on deposit rates and asset purchases to breathe life into the slowest economic recovery the eurozone has seen since 1998, or Bundesbank chief Jens Weidmann – who has also been speaking this morning – urged caution. He thinks the ECB should wait and see.
Weidmann: "No reason to talk down the economic outlook and paint a gloomy picture." 10.45am GMTRoss Campbell,director for public policy at the Institute of Chartered Accountants in England and Wales, says: The government is seeing a lack of meaningful progress on reducing the deficit ahead of the autumn statement next week. This current trend could prove more problematic ahead for the chancellor. Our recent commerce confidence monitor suggests the economic recovery is slowing which could contain an impact on tax revenues, or which contain been slowing and actually fell back year-on-year in October.
At a time of constrained public finances,impending cuts and tight departmental budgets, the UK government still needs to modernise its approach to financial management. With further austerity measures due to be announced, and a comprehensive financial review would ensure sustainability is at the heart of long-term decision making. What is needed is a modern finance ministry to ensure all aspects of financial management – income,expenditure, liabilities, or assets – are taken into account,not just spending.”Continue reading...
Source: theguardian.com