The Bank of England has left the base rate at 0.5% for the twelfth month in a row and ceased pumping money into the UK economy, (quantitative easing). It did however indicate that it could recommence this if the economic situation deteriorates. A year on and there are no real signs of the economy recovering, and the stock market FTSE 100 has made a 10% downward correction since the end of 2009.
What next…….an election for sure, but no matter the political party in power, “Debt UK” is a fundamental issue that will not be resolved for a number of years. The pre budget report figures, issued in November 2009 on the expected reductions in debt, have now been revised with the figure of £40bn mooted in 2015/16 appearing far too optimistic a target.