BOE Governor Says Queen’s Jubilee Could Harm UK Economy
30 March 2012 15:00 - Florence Fullalove

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BOE Governor Says Queen’s Jubilee Could Harm UK Economy

The Bank of England governor, Sir Mervyn King, has said that celebrations for the Queen’s jubilee have the potential to damage the British economy. King was speaking at a hearing of the House of Lords economic affairs committee and said that the Queen Elizabeth Diamond Jubilee will negatively affect the UK’s economy because it includes an extra bank holiday. King also said that the UK output could possibly shrink over the next few months and that the country still faced a long battle to return to the sort of growth it enjoyed before the financial crisis.

The late May bank holiday has been moved to Monday 4th June, and the next day has been designated a holiday to celebrate the event. Speaking of the event the governor said, “We do expect quite possible a fall in output in the second quarter, followed by a rise in the third quarter, as we will lose an extra day’s work – it doesn’t necessarily follow that we will lose that whole day’s output – because of the national bank holiday.”

Many do not fully agree with the governor. Howard Archer, chief economist at IHS Global Insight said that one day’s disruption will only affect the economy to a limited extent.