Abacus Daily Debt News

Debt fears to heighten as double-dip recession looms?

There are still fears Britain may be dragged into a double dip recession - meaning debt fears among consumers could soon rise.

According to Caxton FX, minutes from the Monetary Policy Committee’s latest meeting have failed to quash worries the nation may soon return to an economic crisis.

Members of the group voted seven-to-one in favour of keeping Britain’s interest rate at its current 0.5 per cent low.

This, the foreign exchange company explained, shows the committee believes the recession is over, but the prospect of a double dip is still a distinct possibility.

Tom Hampton, currency analyst at Caxton FX, noted: "A rise in interest rates now could put too much downward pressure on the already fragile recovery."

Chris Jenkins, co-owner of the Homeowners Advice Centre, recently warned any elevation in interest rates could push people over the edge of their financial wellbeing and added such a move could prove particularly troublesome for tenants, as landlords may be more inclined to increase rents.

By James Francis