The Bank of England admitted for first time, the UK was on the brink of a prolonged recession.
Manufacturers recently reported their bleakest outlook since the 1980 recession.
The pound fell in anticipation of future rate cuts. Many now expect another half point rate cut in November. This is good news for borrowers, but, bad news for savers who will see a bigger fall in the real interest rate.
Manufacturers will see a crumb of comfort in the fact the Pound fell to a five year low, in anticipation of rate cuts. The depreciation in the Pound makes exports more competitive. But, even this may be insufficient to prevent a fall in demand for exports due to the global slowdown.
Pound tumbles on King Warning of recession at Times
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