Britain is at risk of sliding into a Japan-style period of deflation, according to a Bank of England policymaker.
He also warns the UK may be even worse-equipped than Japan to escape such a scenario. Adam Posen, a member of the Bank's Monetary Policy Committee (MPC), said Britain and the US were unlikely to face repeated recessions, the Telegraph reports. But in many ways their plight was "scarier" than Japan's, said the renowned Japan expert. In speech at the London School of Economics, he said: "The UK worryingly combines a couple of financial parallels to Japan with far less room for fiscal action to compensate for them than Japan had." He also warned the banking system's continued troub...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes