Despite the UK's legendary Olympic team fuelling a hint of joy amongst a truly abysmal economic outlook, the reality is inflation hit its highest recorded rate held at 5% in August 2008 since 1992. On the brink of a likely recession, the monetary committee struggled in a three way dispute to finalize their decision, with Timothy Beasley voting to increase rates to 5.25%, while David Flowerblanch voted for a cut to 4.75%. The British Chamber of Commerce suggests rates will remain at 5% for the next two to three months however are convinced the threat of a severe recession or possible downturn are more imminent than the risks of higher inflation which is nearing its peak. Rates are expected to cut once a clear inflation peak is apparent with immediate effect in either October or November this year.
Taylor Wimpey, one of Britain's largest international housing and development group's profits slipped an astonishing 96% in the first half to £4.3m. This distinctive decrease indicates there is no quick fix for the UK's diminishing housing market, much to the dismay of Brown and the monetary committee. This vast ongoing slump in this essential market is affecting us all; the skyrocketing inflation rates are decreasing the value of our money and interest rates are forever on the rise to encourage reduced expenditure leaving us with little more then mere pittance. The lack of disposable income within our economy affects all industries across the board and we should expect and prepare for a long period of economic hardship.