25-01-2008
Fool suggests recession is imminent
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
Fool.co.uk has warned that the likelihood of the UK entering into a recession is very high.
In an interview with Adfero, David Kuo, the head of personal finance at fool.co.uk, has confirmed his belief that the UK - partially as a consequence of reduced consumer spending and less favourable borrowing conditions - is likely to find itself within a recession.
Indeed, Mr Kuo believes that the Bank of England will further reduce interest rates next month from their current rate of 5.5 per cent.
"I think [a recession] is very likely [as] consumers really do not have the money to spend as they did this time last year," said Mr Kuo.
"[Also,] credit is becoming much more difficult to get hold of - people are finding that they are not getting their credit card applications approved."
Mr Kuo also observed that the recent interest rate reduction by the Bank of England has - in many cases - not been passed on to consumers.
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