From IVANews:
Debtors who are struggling with the rising cost of living will have a long time to wait before things improve, the Bank of England has warned. The bank has predicted that Britain faces at least two years of “stagflation”, a period of rising interest and limited financial growth. The Bank also suggests that Britain may face a housing crisis to match the US, with the threat of rapidly falling prices matched by a significant increase in the number of repossessions.
The only silver lining to this economic cloud is that the Bank of England is expected to cut interest rates twice in the months ahead and hence reduce the cost of borrowing. However, there is no guarantee that the savings will be passed on to ordinary debtors. Recent cuts in interest rates have helped mortgage providers rather than homeowners, as lenders seek to protect themselves against the worsening economic situation. Borrowing, both in for mortgages and ordinary credit, is likely to continue increasing in cost, as are…
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