The deputy governor of the Bank of England, Charles Bean, has admitted that the recession "highlighted shortcomings" in the Bank's economic forecasting models.
He said that even had the Bank considered the possibility that the economy could shrink by more than 6%, as actually happened, the Bank would have put the chances as being "virtually negligible".
The deputy governor, responsible for monetary policy at the Bank, also confessed that it was encountering puzzles in the behaviour of the economy during the downturn, writes the Independent. FULL STORY...
Banks' PPI claim bill could hit £5bn
Major British banks including Barclays and HSBC could be hit with a £5.1bn bill over the next five years for claims over their mis-selling of payment protection insurance.
Research by US investment bank Morgan Stanley suggests Lloyds is the bank most exposed to PPI claims, with estimates its potential liability could be £1.5bn, writes the Telegraph. FULL STORY...
Internet pumps £100bn into UK economy
The internet is worth £100bn to the British economy, making a larger contribution than transport or utilities, as the country becomes "a nation of digital shopkeepers".
It accounts for an estimated 7.2% of GDP and this could rise to 15% within five years, according to global research by the respected Boston Consulting Group (BCG). FULL STORY...
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