U.K. growth ‘sustainable’
NZPA-AFP London The Bank of England has warned that inflation in Britain could rise in the short term, but that an annual economic growth of 3 per cent was “sustainable”, in its quarterly report. Domestic demand, growing at nearly 7 per cent for the year ended last March, needed to be
curbed if inflation was to be contained and the bal-ance-of-payments deficit reduced, the bank said. Annual inflation stood at 4.6 per cent in June. Salary increases, which rose twice as fast as prices and consumption on a yearly basis, will need to be reined in, the report said, in order to keep production costs
down. The bank added that growth in the money supply — known as M 0 — would slow “in due course” from 7 per cent for the year ended in March. Growth in the economies of the major industrialised nations will slow in the second half of the year, the bank said.
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Press, 15 August 1988, Page 14
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158U.K. growth ‘sustainable’ Press, 15 August 1988, Page 14
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