Money News
7th August 2008
Pace of downturn 'has left UK unprepared'
The sheer speed with which the UK has entered an economic downturn is what has left Britons so financially unprepared, it has been claimed.
According to Darren Cook, head of public relations at Moneyfacts, the fact that the economy has deteriorated so markedly in such a short space of time meant that households were not given a chance to save money to see them through.
He said: "It's taken 12 months - beginning with the funding situation with the banks, then the Northern Rock situation and it's only now in the last three to four months that it has knocked on the front door and actually affected the consumer.
"If that change had happened gradually in 12 to 24 months then people would have been able to adapt their household expenses. It's gone from one extreme to another and it's caught people out."
Mr Cook's remarks come as the Bank of England today voted to keep interest rates on hold at five per cent, which represents a significant blow to cash-strapped consumers who had been hoping for a cut.
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