LONDON (MNI) – The turbulence in the euro zone is likely to
persist, hitting growth there and endangering credit flow here,
Bank of England Deputy Governor Charles Bean says.
In a speech to the Council of Mortgage Lenders Bean was downbeat
about the near term outlook for the euro area, seeing little likelihood
of an early resolution to its problems. On the domestic front, he
highlighted the strains on UK households’ finances and said the most
likely outcome was a sharp fall in inflation.
Bean said last week’s EU leaders agreement was an important step on
the route to a successful resolution, but still only a step.
“The peripheral economies of the euro area will still be faced with
substantial adjustment challenges, including the need to rebalance their
economies and improve their competitiveness. So the strains in the euro
area seem likely to continue for some while yet,” Bean said.
–London newsroom: 4420 7862 7491; email: ukeditorial@@marketnews.com
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