Your browser is no longer supported. For the best experience of this website, please upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Mervyn King, Governor, Bank of England

With UK heading into a recession it has been a difficult year for the governor of the Bank of England, but one in which his words and actions have had huge ramifications for the retail fashion industry.

First there were increases in interest rates in an attempt to control rising inflation, which had a dramatic effect on consumer spending as shoppers struggled to cope with the resulting hikes in their mortgage payments.

Next came King’s frank forecast at an event in Leeds in October that the UK was indeed entering a recession. The result? The sharpest fall in sterling for 16 years, leaving retailers with the tough call as to whether to forward buy more currency now for 2009 or hold off and risk the consequences of the pound plunging further.

Either way, margins will be impacted at least in the second half of next year, which is likely to have a considerable impact on prices to the consumer. However, the Bank of England’s recent cut in the interest rate to 2% was much needed, but it has yet to warm up consumer spending.

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.