Dramatic Cut in Base Rate is a Bad Omen

The UK economy is burling its way towards a deep and dark recession and this week's hatchet job on interest rates by the Bank of England is its first public declaration of the scale of the problem.

Braintree, Essex (PRWEB) November 10, 2008 -- The UK economy is burling its way towards a deep and dark recession and this week's hatchet job on interest rates by the Bank of England is its first public declaration of the scale of the problem.

Sara-Ann Burgess, MD Burgesses

"Not only is it highly unusual for the Bank of England to cut its Base Rate by 1.5% in a single stroke, but the current rate of 3% is the lowest we have seen since 1954. Before taking this step, the members of the MPC will have read the Bank's Inflation Report due out next week and it seems certain it will make for very unpleasant reading."

Not only is it highly unusual for the Bank of England to cut its Base Rate by 1.5% in a single stroke, but the current rate of 3% is the lowest we have seen since 1954. Before taking this step, the members of the MPC will have read the Bank's Inflation Report due out next week and it seems certain it will make for very unpleasant reading.

Unfortunately the Bank of England would not take this type of drastic action if we were not iceberg bound. People should see this as a warning shot of a bleak commercial outlook in 2009 and take steps to protect themselves accordingly.

There is no doubt that things in the labour market are going to get worse. State help is extremely limited and redundancy payments will not last long in most cases

Seeking out an ethical provider of PPI like British Insurance, will help consumers get the cover they need at a fraction of the price that is charged by the major high street banks and building societies. Some consumers may think the cut in Base Rates is a sign that they can relax. The truth is that it is likely to herald much worse times ahead.

"Unfortunately the Bank of England would not take this type of drastic action if we were not iceberg bound. People should see this as a warning shot of a bleak commercial outlook in 2009 and take steps to protect themselves accordingly."

Burgess urged consumers to assess their financial situation and work out how they would cope in the event of losing their job. For those that would struggle if made redundant, she said getting financial protection in place had to be a priority.

"There is no doubt that things in the labour market are going to get worse. State help is extremely limited and redundancy payments will not last long in most cases," claimed Burgess.

She added: "Seeking out an ethical provider of PPI like British Insurance, will help consumers get the cover they need at a fraction of the price that is charged by the major high street banks and building societies. Some consumers may think the cut in Base Rates is a sign that they can relax. The truth is that it is likely to herald much worse times ahead."

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