The Bank of England have confirmed that the UK economy has now entered a recession which is likely to continue through next year. Since the onset of the credit crunch there has been a global economic downturn which has resulted in falling demand and increased unemployment. A growing number of homeowners are now in a negative equity position, with their mortgages, and struggling with unsecured debt. If the recession continues we are likely to see more people requiring debt advice.
Mervyn King, the governor of the Bank of England, hinted that there could be further interest rate cuts in an effort to stave off recession and keep inflation from dropping below targets. The bank predicted that the UK economy could shrink by as much as 2% over the next twelve months.