World Video | Defence | Foreign Affairs | Natural Events | Trade | NZ in World News | NZ National News Video | NZ Regional News | Search


UK Can Weather Financial Crisis - Gordon Brown PM

UK can weather financial crisis - PM

The United Kingdom is in a strong position to manage the financial uncertainty caused by the credit crunch, the PM has said.

Speaking to journalists during his monthly press conference, the PM said that a combination of sound fundamentals and low inflation would help the UK "weather the global financial storm". Tough decisions, particularly on public pay awards, had been key in manitaining stability he said.

The PM said:

"At all times we will take the tough long-term decisions to ensure, in testing times, the stability of the economy. Steering that course of stability is the essential foundation for meeting the long-term challenges of equipping our country for the future."

Mr Brown welcomed recent intervention by central banks in Europe and the US, with several institutions pumping cash into financial markets to help with liquidity. The Bank of England lent £10 billion to the City yesterday.

The credit crunch - a "gumming up" of interbank lending - was triggered when rising interest rates in the US resulted in many high-risk borrowers defaulting on their mortgage repayments and lenders suffering significant losses.

The Prime Minister said he had been in conversation with Chancellor Merkel, President Sarkozy and EU Commissioner Jose Manuel Barroso about the issue, and would soon talk with President Bush. The German Chancellor and the French President have also been invited to London for further talks.

Speaking at today's press conference, Mr Brown said that the decision to stage pay awards in the public sector, including the police, had been pivotal in keeping inflation down - the UK rate is currently 2.1 percent, almost at target, compared to 4.3 percent in the US and 3.1 percent in the Euro zone.

Chancellor Alistair Darling, who also attended the press conference, said that the UK economy was "growing well" through 2007 and that inflation had been kept under control despite rising commodity prices.


Latest World News | Top World News | World Digest | Archives | RSS

© Scoop Media

World Headlines


Preliminary Results: MH17 Investigation Report

The Joint Investigation Team (JIT) is convinced of having obtained irrefutable evidence to establish that on 17 July 2014, flight MH-17 was shot down by a BUK missile from the 9M38-series. According to the JIT there is also evidence identifying the launch location that involves an agricultural field near Pervomaiskyi which, at the time, was controlled by pro-Russian fighters. More>>


At The UN: Paris Climate Agreement Moves Closer To Entry Into Force

The Paris Agreement on climate change moved closer toward entering into force in 2016 as 31 more countries joined the agreement today at a special event hosted by United Nations Secretary-General Ban Ki-moon. More>>



Gordon Campbell: On The End Game In Spain (And Other World News)

The coverage of international news seems almost entirely dependent on a random selection of whatever some overseas news agency happens to be carrying overnight... Here are a few interesting international stories that have largely flown beneath the radar this past week. More>>

Amnesty/Human Rights Watch: Appalling Abuse, Neglect Of Refugees On Nauru

Refugees and asylum seekers on Nauru, most of whom have been held there for three years, routinely face neglect by health workers and other service providers who have been hired by the Australian government, as well as frequent unpunished assaults by local Nauruans. More>>


Other Australian Detention

Gordon Campbell: On The Censorship Havoc In South Africa’s State Broadcaster

Demands have included an order to staff that there should be no further negative news about the country’s President Jacob Zuma, and SABC camera operators responsible for choosing camera angles that have allegedly made the President ‘look shorter’ were to be retrained... More>>


Gordon Campbell: On A Bad Week For Malcolm Turnbull, And The Queen

Malcolm Turnbull’s immediate goal – mere survival – is still within his grasp... In every other respect though, this election has been a total disaster for the Liberals. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news