Bank of England: UK heading into recession

Professor David Blanchflower, who is one of the nine people who meet at the Bank of England to decide on the UK interest rates, has warned that the UK is heading into a recession, he has now called on his colleagues to act immediately.

Blanchflower has said “I think we are going into recession and we are probably in one right now.” Blanchflower has been calling for an interest rate cut for some time, he said “It’s not too late to stop it but we have to act right now. Monetary policy has been far too tight for too long.”

Blanchflower fears that this downturn could prove much worse for the UK than the US, unemployment is already up and there are now fears that interest rates could jump to 7 per cent, current levels are at 5 per cent.

Blanchflower has told his Bank of England colleagues that they should worry less about inflation, as he feels that this is just temporary. He thinks that his colleagues should make the decision to cut interest rates sharply.

It certainly looks as if the UK is entering its first recession in two-decades, but it is not to late to stop it from happening, the Bank of England needs to act quick.

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