Debt advice: Double-dip recession 'very likely'

29/01/2010

Britons may wish to seek out debt advice after being warned that the country could still very easily slip back into recession.

Currency exchange firm Travelex said that a double-dip recession is a "strong reality" and that the massive public deficit is likely to lead to very big cuts in public spending.

The comments come despite the fact that sterling reached a five-month high against the euro yesterday (January 28th), trading at €1.16 in the afternoon.

Mark Bolsom, head of the UK trading desk at Travelex, said that the pound had been boosted by suggestions that the Bank of England will not extend its quantitative easing programme beyond its current £200 billion.

"It is an undeniable fact that both the government and Bank of England have pumped in unprecedented levels of stimulus into the economy and it has grown only marginally," he explained.

"The real question is what will happen to growth after the stimulus is withdrawn? I wouldn't go as far to say return to recession is inevitable, but I would say it is a strong possibility."

Tags; Current UK Economy,

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