All tools in the armoury needed to tackle recession, expert says
The government's attempts to spend its way out of the recession is justifiable as all tools in the armoury need to be used to fight the economic downturn, an economist has suggested.
Paul Dales of Capital Economics commented that the current financial situation requires combined action through interest rates and fiscal policy - news which might interest borrowers of mortgages for professionals.
His comments come as chancellor Alistair Darling's pre-budget report this week proposed a cut in value added tax from 17.5 per cent to 15 per cent to try and encourage consumer spending.
Interest rates also fell to three per cent this month, their lowest rate since the 1950s.
With experts predicting a fall in inflation during 2009, further interest rate cuts could be deployed by the Bank of England to tackle recession in the UK economy.
Mr Dales said: "We are in a situation where you just need to do what you can to get out of that situation and then worry about the long term or medium-term effect of higher borrowing."
Mortgages for professionals provides no obligation mortgage advice to professional clients with high projected earnings from investment bankers, to accountants and solicitors.
Paul Dales of Capital Economics commented that the current financial situation requires combined action through interest rates and fiscal policy - news which might interest borrowers of mortgages for professionals.
His comments come as chancellor Alistair Darling's pre-budget report this week proposed a cut in value added tax from 17.5 per cent to 15 per cent to try and encourage consumer spending.
Interest rates also fell to three per cent this month, their lowest rate since the 1950s.
With experts predicting a fall in inflation during 2009, further interest rate cuts could be deployed by the Bank of England to tackle recession in the UK economy.
Mr Dales said: "We are in a situation where you just need to do what you can to get out of that situation and then worry about the long term or medium-term effect of higher borrowing."
Mortgages for professionals provides no obligation mortgage advice to professional clients with high projected earnings from investment bankers, to accountants and solicitors.
