[Ed. Note: If you go back in time far enough, way way way back, a Pound Sterling was an actual troy pound of sterling silver, meaning 12 troy ounces of sterling silver. Since a troy ounce of sterling costs £12.52 today, that puts the price of a troy pound of sterling silver at over £150 Pound Sterling. When, exactly, do we decide that it doesn't require a genius-level IQ to conclude that the pound sterling will be further devalued? £200? £300? £500? At what point do we simply recognize that they're willing to devalue this thing? In other news, the sun will most likely rise tomorrow morning.]by Philip Aldrick, Economics Editor
Growth in Britain is going to remain “challenged” for the next three to five years as the Government continues to shrink the public sector and cut the budget deficit.
As banks and households also grapple with their excessive debts, “that leaves one policy tool outstanding, which is basically the currency”, Pimco managing director and sterling bond head Mike Amey said.
George Osborne has pinned his hopes for the economy on Mr Carney, Canada’s central bank boss until the end of the week, living up to his reputation as a monetary “activist” to help ease the transition to an export-focused economy less dependant on consumer spending.
Although economists reckon there is little more central banks can do, Mr Carney has insisted policy is not “maxed out”.
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