Economic slowdown to continue warns BoE deputy governor

The current economic slowdown could ‘drag on for some considerable time‘ warns Charles Bean, the Bank of England’s deputy governor.

Speaking to the BBC from the annual conference of the world’s leading central bankers in Jackson Hole, Wyoming, Mr Bean described the downturn as challenging as in the 1970s and that every time the markets improve, another grenade exploded.

However, if oil and credit markets stabilise, growth should improve and inflation should fall, according to Mr Bean, who took on the role as deputy governor earlier this year.

We’ve got our fingers crossed for improvement, said Mr Bean, but there is the recognition that there is still a long way to go yet.

The latest data from the Office for National Statistics (ONS) has revealed that UK economic growth ground to a halt between April and the end of June, representing the weakest performance since 1992 (the tail-end of the last recession).

Furthermore, Britain’s services sector, which makes up around two-thirds of output, grew by just 0.2% between April and June, the weakest growth since the end of 1995.

However, Mr Bean stresses that the crisis will come to an end and this is just a transitory period of subdued growth. Growth will resume to more normal levels, he added.

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