IMF: UK faces credit rationing or higher interest rates unless Bank prints more money
So much for Brown's claim that the UK is "best placed" for recovery ..
... The IMF's six-monthly snapshot of global financial conditions singled out the UK as the country most at risk from a potential dearth of funding, due to its weak banks and the need to finance the government's budget deficit. "In terms of regional vulnerability, the UK appears most susceptible to credit constraints ... given its significant reliance on the banking channel and the projected sharp decline in domestic bank balance sheets, as well as substantial public financing needs," said the GFSR.
The fund said the UK could be facing a funding gap of £180bn next year – 15% of gross domestic product – and far higher than the 2.4% projected for the United States and the 3% for the eurozone. ...
The fund said the UK could be facing a funding gap of £180bn next year – 15% of gross domestic product – and far higher than the 2.4% projected for the United States and the 3% for the eurozone. ...
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