Mortgage approvals in the U.K. fell to 21,584 from a revised reading of 23,383 in September as credit conditions remain far from normal. The downturn in the global financial market paired with tightening credit conditions continues to take a toll on Europe’s second largest economy, and conditions may only get worse as home prices fall further. Meanwhile, business investments in the U.K. fell 0.2% in the third quarter despite expectations for a 1.9% decline. The data suggests that economic activity will remain subdued well into 2009 as the economy heads into a recession, which could force the Bank of England to lower borrowing costs even further as growth prospects deteriorate. Market participants have already raised bets that the BoE will deliver a 50bp cut at the December 4th policy meeting, which would lower the benchmark interest rate to 2.50% from 3.00%.