Commenting on the renewed turmoil in the global financial markets, David Kern, Economic Adviser to the British Chambers of Commerce, said:
"The UK economy and its financial system cannot remain immune to the worsening turmoil in the global financial markets. We have stressed repeatedly that the UK is very likely already in technical recession, with small UK GDP declines expected in the third and fourth quarters of 2008.
"But the financial global turmoil worsens the threat of a deeper economic decline, and heightens the need for early action. Although we may need to wait another month or two until we have evidence that UK CPI inflation has peaked, the MPC should now consider a small interest rate cut in October."