Bank of England’s Tucker is upbeat on UK economy

PARTS of Europe are experiencing difficulties but Britain’s economy looks in better shape now than it was a few months ago, Bank of England deputy governor Paul Tucker said yesterday.

In an interview with BBC Radio Oxford, Tucker struck a cautiously upbeat tone and reiterated the central bank’s commitment to bring “uncomfortably high” inflation back to target.

“The world is still a hazardous place and there are obviously difficulties around Europe. But I think the UK is in a better position now than perhaps it was a few months ago,” Tucker said.

Tucker said the government’s action to cut the budget deficit had taken away some of the risks to the macro-economic outlook, and noted it had been widely welcomed by the business community.

The action that has been taken to put the UK public finances on a better footing over the next few years provides some insulation for our economy,” he said. He said businesses were “mildly optimistic” on the future.