BoE’s Blanchflower sees sharp recession in 2009

Bank of England policymaker David Blanchflower has said that the recession will deepen in 2009, and monetary policy needs to be loosened accordingly.

He added, according to Reuters, that the Bank of England should keep ‘all options on the table’ now it has been given the go-ahead to print new money to tackle the problems in the economy, even if it is too early to say whether it will do so.

Blanchflower was the only policymaker to call for a 1% base rate cut in the most recent Monetary Policy Committee meeting, with all eight other members voting for the 0.5% cut.

A spokesperson for debt management company Gregory Pennington said: “A number of senior figures are predicting particularly tough times for the economy this year, and this highlights the need for consumers to get their finances in order and tackle any debt problems as soon as possible.

“Many are likely to face shrinking incomes this year, which can make repaying debts much more difficult. We advise anyone experiencing debt problems to speak to a professional debt adviser as soon as possible.”

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Gregory Pennington offer a range of debt solutions, including debt management plans. If you are worried about debt, contact one of our expert debt advisers now.