The Bank of England's Monetary Policy Committee (MPC) let it be known at midday today that UK interest rates are to notch up a fifth successive month at their current all-time low of 0.5% (external website). The persistence of interest rates at such a historically unprecedented low is just one example of a key characteristic of the current recession: the previously unthinkable rapidly becoming commonplace.
Other examples include: the equally unprecedented collapse in pay awards; the wave of bank failures; and employers' (and, in many cases' employees') willingness to explore radical alternatives to redundancy.
The last few days have brought some indications that the economy might at last be turning a corner, which might in turn help set the scene for the expected interest rate increases in 2010:
- "The UK jobs market shows signs of life," (subscription required), according to latest research from the Recruitment and Employment Confederation (REC) and consultants KPMG.
- "The worst of the recession is over," (external website), according to the latest quarterly survey from the British Chambers of Commerce (BCC).
But as we have recently noted, there is currently no end of optimistic commentators vying to identify clear evidence that economic recovery is in train; whether such claims prove founded remains to be seen.
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