UK 'still in the grip of the credit crunch'

By Sarah Engle, Tue 26 Aug 2008 - Published in Loans

With the credit crunch reaching its first anniversary this month, people may still struggle to secure loans and to cope with rising living costs, one expert has claimed.

Charles Davis from the Centre for Economics and Business Research said that the financial situation in the UK "has still not normalised".

He stated the country has had to deal with both the credit crunch and inflationary pressures.

Mr Davis said: "There is a dual hit on the economy at the moment which is making things very difficult."

In August last year, it was widely reported that the UK was experiencing a credit crunch.

Adam Applegarth, who was chief executive of Northern Rock at the time, described August 9th 2007 as "the day the world changed".

According to the British Chambers of Commerce's economic survey for quarter two of 2008, the UK is currently only one quarter away from a technical recession.

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