This week’s economic news

Two new bits of new today.

First, some strong Index of Production figures, which surprised on the upside. The ONS reported; ‘Total production output increased by 0.5 per cent between November and December’.

The other big news was the Governor of the Bank of England’s press conference setting out the Bank’s Inflation Report. The Governor said it was “far too soon” to say officials will make no new purchases through the bond program as the central bank forecast inflation will undershoot its target over the next two years.

Here’s what the Governor had to say on whether the UK would ever lose its AAA credit rating;

“I cannot think of any reason why the UK should lose it. It would be most peculiar if this should happen.”

“The UK has a very good track record. There is a wide political consensus on the need to reduce the deficit.”

And on the Conservative’s ridiculous comparisons with Greece;

“I don’t think you can compare the UK with Greece. There are big differences. We have our own currency. There is clear political (agreement) to take action here. There is a good track record … and perhaps more importantly the maturity of UK debt is much longer.”