on the upside it takes any prospect of an early rate hike off of the agenda

[just john]

The pound continues to weaken against the Euro 1.159 to the pound, is it a deliberate competitive devaluation policy, to boost UK exports and help cut the trade deficit ?

http://www.telegraph.co.uk/finance/economics/8280552/UK-economy-shrinks-market-reaction.html

 

[Quillan]

What it means is people either don't have any money to spend or can't borrow any money to spend. If you think of the UK as a bank would you put your savings with them when you can do much better somewhere else. I think that sadly the UK market will continue to shrink for most of 2011 but I am no expert although even they seem to be consistent these days in getting it wrong. [;-)]