The Bank of England admits that the £400billion quantitative easing programme is now less effective.
Consumer Price Index inflation remained at 2.7% in January. The CPI is the rate prices rise at annually. This is now the fourth month in a row at this rate.
Governor Sir Mervyn King admitted that the near £400billion quantitative easing programme was now less effective but maintained that it is still ready to do more to support the recovery.
The high inflation rate coupled with stagnant growth prompted the Bank of England to predict a difficult road to economic recovery.
The pound slumped in reaction to Sir Mervyn's downbeat take on the economy. This indicates that currency traders believe an interest rate rise would revive enthusiasm for sterling but that this prospect remains distant.
You may find your repayments rising dramatically when new legislation comes into force.
Interest-only mortgage holders could face massive rises in monthly payments if they have to change mortgages, following the introduction of tough rules on interest-only mortgages by lenders, a survey has found.
Interest only borrowers are expected to make sure they have a means of repayment in place to pay off the capital at the end of the deal, however, not everyone is in that position.
Tighter regulations are being introduced by the FSA in 2014 and in response many mortgage lenders have withdrawn from interest-only lending. Other lenders have tightened the criteria on which they will offer the loans.
It means many homeowners nearing the end of their mortgage deal will be unable to shop around and switch providers unless they can show proof of an acceptable repayment method such as an equity Isa, pension or endowment.
In many cases they will face an increase in monthly costs, which has prompted a large number of homeowners to state that they will no longer be able to keep up with the mortgage.
Cash-strapped consumers have been reduced to borrowing money at ridiculous rates of interest whilst 'payday loans' companies have cashed in due to the credit crunch. But there is opposition.
A hard-hitting Payday Loan Danger Day campaign, led by Coast & Country, a social housing provider in Tees Valley in the North East of England, reached a substantial percentage of people living in the area.
The message they are putting out is that cash-strapped households should steer clear of payday loans, warning that 'there are 'some sharks you can't see coming'.
Talking directly to local people, advertising on vans which toured the area, text messaging, newsletters and business cards were also distributed throughout the district and helped to ensure the message reached as many as possible.
Coast & Country has announced that its campaign against payday loans will continue.