Wednesday, January 23, 2008
Bank of England will cut interest rates in 2008
The Bank of England will cut interest rates at least three times this year in a bid to avert recession, according to the Ernst & Young’s ITEM Club Winter forecast.
Rates will be lowered by a quarter of a point “at least three times” in a bid to avert the onset of recession, the economic panel said.
The economists believe that the risk of an outright domestic recession remains low given the momentum in growth, the strength of the world economy (outside the US) and the recent prospective easing in monetary policy.
The economy will, however, undergo a “painful rebalancing” as it stabilises in 2008, the panel said.
DATED: 23.01.08
FEED: MT
