In the CBI’s latest economic forecast, it predicts lower economic growth than the Bank of England foresees, which could have wide-reaching implications.
A poor economic performance for the UK could lead to job losses which would have a severe effect on the thousands of Britons only just managing to pay bills and debt.
While the Bank of England has reacted to economic concerns by raising the interest rates, this will increase the amount people must repay on loans and mortgages linked to it.
CBI chief economic adviser Ian MacCafferty said: “The Bank of England faces a difficult challenge. The inflation outlook suggests a further increase in interest rates later this year, but growth for 2007 is already expected to slow to below the Bank’s current projections.”
With such gloomy prospects expected by financial experts, consumers may be moved to start working to clear debt now to avoid hardship in the near future.