Thursday, September 20, 2012
Mervyn wants to be remembered in Economic History lessons
"The Governor of the Bank of England suggested that it would acceptable for George Osborne to break his pledge on debt reduction due to the state of the world economy". Note: In his first Budget, Mr Osborne set himself two targets by which he wanted the markets to judge the Governmentâ€™s commitment to stronger public finances. The first was to eliminate the structural deficit on a rolling basis over five years, and the second was to have overall national debt falling as a proportion of GDP by the 2015/2016 financial year. He said at the time that the second goal was needed â€œto place our fiscal credibility beyond doubtâ€. The Treasury is surely preparing to concede that it will miss the debt target when the Office for Budget Responsibility updates its official forecasts on December 5?