IMF report highlights threats of recession

Commenting on the IMF's new global financial stability report, David Kern, Economic Adviser to the British Chambers of Commerce said:
 
"The new IMF study confirms that the growing pressures on the international banking system could hit businesses, with dire consequences for jobs. Falling house prices could further weaken the banking sector's balance sheet. The result would be increased concerns over credit risks, leading to a dangerous cutback in bank lending. 
 
"If this happens, individuals as well as businesses would be hit, and what is now a very unpleasant slowdown could degenerate into a nasty recession. To alleviate the threats facing the banking system, it is critical that the MPC does not increase interest rates any further. Once inflation reaches its peak in the autumn, it is important to start cutting rates."

Ends

Media Contacts:

Fiona Cunningham
Tel: 020 7654 5812
Email: f.cunningham@britishchambers.org.uk

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Sam Turvey
Tel: 020 7654 5813
Email: s.turvey@britishchambers.org.uk

Notes to Editors:

The British Chambers of Commerce (BCC) is the National Voice of Local Business.
The BCC sits at the heart of a powerful nationwide network of Accredited Chambers of Commerce serving business across the UK, which employ over five million people.