Bank of England endorses New Normal

Chemical companies, Currencies, Economic growth, Financial Events

BoE.pngThe Bank of England has become the first major central bank to endorse the argument that we are moving towards a ‘New Normal’.

In an important speech this week, its Governor Mervyn King, set out the argument that we can look forward to:

a SOBER decade – a decade of Savings, Orderly Budgets, and Equitable Rebalancing“.

And he contrasted this with the recent past:

the Non-Inflationary Consistently Expansionary – or ‘NICE’ – decade from the early 1990s to the early 2000s“.

This is very much in line with the arguments put forward in the blog’s White Papers on ‘Budgeting for a New Normal’ this year.

A similar message has come today from the USA, where Treasury Secretary Tim Geithner, told the Wall Street Journal that “The rest of the world wants us to save more–and that means less U.S. demand for the rest of the world. Demand is going have to come from other sources.”

This transition to the New Normal is not going to be easy. Chemical companies now preparing their Budgets for 2011, should expect plenty of bumps in the road.

PREVIOUS POST

EU auto sales down 10% in September

20/10/2010

EU auto sales were better in September than in either July or August. But ‘...

Learn more
NEXT POST

Budgeting for Uncertainty

23/10/2010

When elephants fight, those around them need to be cautious. And this is the pro...

Learn more
More posts
Global chemical industry – key trends for success in today’s New Normal
02/08/2020

The chemical industry is the best leading indicator for the global economy. On Friday, I had the pri...

Read
Oil prices signal potential end to the V-shaped recovery myth
26/07/2020

Oil prices have moved into another ‘flag shape’ – which previously provided critic...

Read
Bankruptcies now the key risk as hopes for V-shaped recovery disappear
19/07/2020

Governments, financial markets and central banks all originally assumed the Covid-19 pandemic would ...

Read
Reshoring set to create Winners and Losers as advanced manufacturing takes over
12/07/2020

Not many companies still operate in the same way as 500 years ago, or even 50 years ago. But in manu...

Read
Merkel warns of need to prepare for No Deal Brexit
05/07/2020

Most people missed the fact that last Tuesday was the last possible date to delay the UK’s exi...

Read
Economic risks rise as the lockdowns end
14/06/2020

It is now 13 years since I wrote the first post here, in June 2007. A lot has happened since then: ...

Read
World moves from Denial to Anger, as the Paradigm of Loss moves forward
07/06/2020

I have been warning about the Covid-19 risk since early February, and in April suggested here that: ...

Read
The New Normal for global industry
31/05/2020

The global chemical industry is the third largest sector in the world behind agriculture and energy,...

Read

Market Intelligence

ICIS provides market intelligence that help businesses in the energy, petrochemical and fertilizer industries.

Learn more

Analytics

Across the globe, ICIS consultants provide detailed analysis and forecasting for the petrochemical, energy and fertilizer markets.

Learn more

Specialist Services

Find out more about how our specialist consulting services, events, conferences and training courses can help your teams.

Learn more

ICIS Insight

From our news service to our thought-leadership content, ICIS experts bring you the latest news and insight, when you need it.

Learn more