Inflation report: Are we in Recession?

On Wednesday The Bank of England will be issuing what economists and Britain’s everywhere are waiting for, the latest inflation and growth projections. The report will show how much the UK economy has tumbled over the last three months bringing Britain to or into a recession.

The last inflation report which was out in August showed flat growth for 2009, but since this projection the catastrophic collapse of Lehman Brothers started the ball rolling in the worse financial crisis to hit the banking sector for decades, resulting in a global meltdown and Britain being pushed to the edge of recession.

Over the last three months there has been a list of unimaginable events in the banking sector which included the nationalization of Bradford & Bingley and a £400 billion bailout from the government for troubled UK banks, earlier in the year Northern Rock was also nationalized.

The Monetary Policy Committee took drastic action on Thursday but cutting the BOE base interest rate by 1.5 percent, is now fighting a battle against deflation.

Source: Walesonline