10
August
UK risks a Japan-style lost decade, BoE will warn
10 August 2009 The Telegraph
Britain has not yet shaken off the risk of slumping into a Japan-style "lost decade", the Bank of England will this week indicate as it downgrades its growth forecasts, and casts deflation as a significant threat.
The Bank 's Governor, Mervyn King, will use Wednesday's Inflation Report to signal that the risk of falling victim to a debt deflation trap was one of the primary reasons why the Monetary Policy Committee extended its controversial Quantitative Easing (QE) programme last week. And in a further sign of the fears still surrounding Britain's economy, a prominent expert has said that next year could be even more painful than 2009 as the UK suffers a second wave of the slump.
