Double Dip
Posted on 11 August 2010 by
I am all but certain this used to be a sweet, but these days it more commonly refers to our economy and the not so sweet prospect of a double dip recession. News over the last few days has left us wondering again whether we will have such a recession. Earlier in the week, RICS and the media coverage around their house price news suggested we would, but today the Bank of England have countered.
Mervyn King, the Bank’s governor, said Britain was facing a “choppy recovery”.
“The UK recovery is likely to continue, but the overall outlook is weaker than that presented in the May Report, reflecting the softening in confidence, the persistence of tight credit conditions and the faster fiscal consolidation,” he said.
The Bank is not predicting a double-dip recession in the UK, instead giving clear backing to the scale of tax rises and spending cuts announced by the Government as it attempts to reduce the nation’s £155bn deficit.
It all looks like interest rates will be at 0.5% for some time to come. But one thing we have learned from the last few years is that Franklin was spot on (on death and taxes - he seems to have said an awful lot of things...)
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