Mr Blair reassured investors by keeping on the governor of the Bank of England, Sir Edward George.

ECONOMIST: Brazil

The governor of the Bank of England, Sir Edward George, has also suggested that house price rises are set to cool.

BBC: House prices 'to rise 12% in 2003'

The governor of the Bank of England, Sir Edward George, has already started making noises about the implication of such a fall.

BBC: Testing the value of the pound

Speaking at the annual Mansion House dinner in June, the Bank's Governor Sir Edward George admitted the Bank of England had cut interest rates earlier this year to bolster consumer demand and insulate the UK from the global slowdown - at the expense of worsening the imbalance in the economy.

BBC: Bank weighs two-speed economy