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UK economy 'on the right track'

Wednesday, March 10, 2010

Source: Catherine Deshayes

A top Bank of England policymaker has told Sky News he is confident that enough will be done to turn around Britain's economy.

Speaking on Jeff Randall Live, Monetary Policy Committee member Dr Adam Posen said the UK's spiralling debt problem will be solved no matter which party wins the upcoming General Election.

He commented: "I think all three major parties have made it clear they are going to pass some form of an austerity budget. The details do matter, but they're all going to be big enough to get us on the right track."

His comments came just hours after ratings agency Fitch warned again over the state of the British economy. Fitch reiterated its concerns over the UK's public finances and called for tougher action on its budget deficit, which is set to hit a record £178bn.

At the same time official figures showed UK exports took their biggest plunge in three years during January. Exports fell by £1.4bn, or 6.9%, to £19.5bn compared to December 2009 in the largest month-on-month fall since July 2006.

That helped push the UK's trade gap in physical goods to £7.99bn, almost a billion pounds more than experts had predicted.

The fall came despite the weakening pound, heightening concerns that the slide in the value of sterling over the past few years is not boosting exports.

Source: www.ananova.com