Fears UK Is In 'Worst Ever' Economic Crisis - 6th Oct 2011
Britain could be in the grip of the "most serious financial crisis ever", the governor of the Bank of England has exclusively told Sky News. Sir Mervyn King said the global and UK economies had been turned on their heads in the past three months alone and said: "The world has changed."
The situation could be even worse than the Great Depression of the 1930s, he said, making it crucial do "the right thing" - which in the UK now means pumping more cash into the economy.
Sir Mervyn gave the rare interview after the Bank's Monetary Policy Committee (MPC) voted to unleash a fresh round of quantitative easing (QE) to stimulate economic growth, while holding interest rates.
The move, which means effectively printing an extra £75bn of cash, has prompted fresh fears that the UK is on the brink of another recession.
The decision marks the first time the Bank of England has extended QE since November 2009, and suggests the MPC is growing more pessimistic about the UK's economic prospects.
There are also fears it will lead to a surge in the already-high rate of inflation, which would erode savings and pension funds. Read More
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