Signs of economic recovery

The Bank of England has announced that it will keep interest rates at the record low level of 0.5% for the sixth month in a row. The rate was 3% in December 2008 but was brought down steeply to it's current level in the first quarter of 2009. Since then the rate has held steady during the worst months of the economic downturn. The Bank Of England has also said it would continue with it's program of quantitative easing by pumping around £175bn into the economy as well as the planned purchase of £50bn worth of gilts over the next three months.

The news comes against a back drop of more optimistice financial news that is suggesting theed that the UK economy is beginning to crawl out of recession.

Gross domestic product (GDP) has been revised to a fall of 0.7% from 0.8% compared with the previous quarter.

The Bank of England has however warned recovery will be a "slow and protracted" one.

As if to underline this an article in the FT today reports criticism of quantitative easing programme because it appears to have failed prompt banks resume lend to households and businesses.

The article highlight several signs that that credit is still not easily available. This month the Bank of England released data showing that the level of outstanding loans declined at a record pace in July.

Despite these reservations we are seeing more and more signs that gradually the economy is picking up. This week the National Institute of Economic and Social Research announces it's seen a return to UK economic growth in the three months to July. Official manufacturing figures suggested the sector has shown strong growth during July and the Recruitment and Employment Confederation said it has found "marginal increases" in both permanent and temporary job appointments in August.Office for National Statistics has revealed that the rate of contraction of the UK economy in the three months from April to June has been reduced by the.

Whilst it would seem that recovery is underway the effect of the recession will be felt for a long time however and with credit still difficult to come by the numbers of people visiting IVA and debt consolidation websites such as debtcare.co.uk & debtcounsellors.co.uk is still high levels.