Global financial turmoil requires early response from MPC

Commenting on the renewed turmoil in the global financial markets, David Kern, Economic Adviser to the British Chambers of Commerce, said:
 
"The UK economy and its financial system cannot remain immune to the worsening turmoil in the global financial markets. We have stressed repeatedly that the UK is very likely already in technical recession, with small UK GDP declines expected in the third and fourth quarters of 2008.
 
"But the financial global turmoil worsens the threat of a deeper economic decline, and heightens the need for early action. Although we may need to wait another month or two until we have evidence that UK CPI inflation has peaked, the MPC should now consider a small interest rate cut in October."
 
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Media Contacts:

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

OR

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.