Jubilee Celebrations Could Push UK Economy Into Recession
Celebrations for the Queen's Diamond Jubilee could tip the British economy into recession again, Bank of England Gov. Sir Mervyn King has warned.
He was asked about the impact of the Jubilee holiday as he appeared before the House of Lords economic affairs committee yesterday. The U.K.'s May public holiday has been moved to Monday, June 4, and the next day has also been designated a day off to mark the event.The governor said: "We do expect quite possibly 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."