Economic outlook “highly uncertain”

The outlook for the UK’s economy has been described as “highly uncertain” by the governor of the Bank of England Mervyn King.

Speaking at a recent Treasury select committee, Mr King suggested that a range of factors, including rising food and energy prices around the world are having an impact in the UK.

“The outlook is highly uncertain, which makes the task of navigating through the next few months far from straightforward,” he said.

“In the UK, the consequences are difficult to assess and are likely to be evident first in the housing and commercial property markets.”

The difficult economic climate could also be bad news for people aiming to become debt free, given the likelihood of higher borrowing costs and tighter restrictions on lending, Mr King suggested.

According to the Insolvency Service, the third quarter of this year saw just under 16,000 people declare bankruptcy