Current UK Economic Outlook

[Beach Hut]

Is very poor to say the least for the UK and the IMF advises UK economy will contract worse than others in the next 12 months.

We are heading for a very dark time economically so good luck everyone and spend wisely but hopefully the huge downward hike in interest rates will help.

 

[El Presidente]

It will only help if

1. Banks pass on the reduction in rates
2. People spend the extra money, but in a recession they are more likely to pay down debt

 

[steward 433]

It will only help if

1. Banks pass on the reduction in rates
2. People spend the extra money, but in a recession they are more likely to pay down debt

Wasn't the population of the country something like £1 TRILLION in debt not including mortgages and rising at last count?

 

[Beach Hut]

If this extra cash generated does only pay off debt then we really heading for a very harsh time for quite a while.

I suppose one thing that could happen is the option of consolidating debt on the mortgage at a cheaper interest rate however there are limited mortgae options available at present.

Funnily enough a mate of mine who is a PFA said mortgages were picking up slowly.

 

[Herr Tubthumper]

..and if you do spend money try and spend it in your local economy not a chain business.

 

[bigc]

Not that I'm saying our economy won't be pummelled, but doesn't anyone see a bit of irony in the IMF telling us that, when they are one of the institutions that presided over the current sorry state of affairs in the world developing.

That and their rigid adherence to the Washington Consensus in the '90s that really did no help for emerging democracies and helped create chaos in others, e.g: Russia.

 

[beorhthelm]

its funny becasue only months ago it was being said we had too much debt. now thats the way forward, to increase the debt?

no. the recession is inevitable and its our own fault for remortgaging every 6mth to take another £10k out of our properties risen market value then spanking that on another holiday to the US, 60" plasma screen and pots of pebbles to decorate the faux fire in the "improved" sitting room. if the government is seriously thinking about tax cut and increase in public spending, we will have a very f***ed economy in a few years time rather than one recovering.