The UK macro economic data, released yesterday, suggests that it would be pre-mature to say, that the economy of Great Britain is on the way to recovery.
Nationwide informed about continuously falling prices for housing in the UK. In April the house price index in the country dipped by 0.2% which is 0.9% on an annual basis. Analysts had rather hoped for an increase in the index by 0.6%.
The fall in the housing prices pushed the pound down against the single European currency. Eventually, the euro rose by 0.1% to the level of 81.4 pence. However some time later the pound rebounded to its recent uptrend.
Possible negative effects of a growing British currency are one of the major concerns of the Bank of England. Sir Mervyn King told BBC Radio that the British economy is reviving, yet at a slower pace than the central bank plans.
Additionally, despite a low key interest rate and several rounds of quantitative easing, inflation is still hovering at high levels.
It should be mentioned that the Bank of England aims to keep inflation at the 2% target set by the Government.