Interest rates have remained at an all time low of 0.5% for 10 months in a row and the Bank of England is continuing with its quantitative easing programme.

It has been upped to a £200bn asset purchase programme to increase the money in the UK’s financial system and boost bank lending.

Meanwhile, total government debt is projected to rise to £1.4 trillion, nearly doubling to 80% of GDP.

Unsurprisingly, debate is well underway as to how to better regulate the banking industry, including the control of bankers’ bonuses. 

In Q3 of 2009, lending to companies fell across all main sectors of the economy. The major UK lenders expect demand for new lending to remain subdued until Spring 2010 at the earliest. Domestic mortgage approvals have however increased somewhat in the months leading up to Christmas. 

Some optimism is demonstrated by the steady and continued climb of the FTSE 100 index, which has remained above 5,000 points since early October 2009.