The stream of bad news includes:
- Falling house prices (an important barameter of economic well being for homeowners in UK)
- Rising mortgage costs due to credit crunch and record low levels of mortgage approvals
- Slumping high street sales, such as Marks & Spencers.
- Falling consumer and business confidence
- Falling living standards as consumers struggle with rising food and energy prices.
- Lower growth forecasts.
- No prospect of interest rate cuts as the MPC worries over inflation exceeding target
- Rising government debt, leaving little room for expansionary fiscal policy