Base rate set to stay low

The Bank of England base rate has been predicted to remain at its historic low of 0.5% for at least all of next year and still be below 2% in 2014, according to the latest forecast from the Centre for Economics and Business Research (cebr). The report, based on the assumption that the Government will attempt to reduce the Budget deficit by £100 billion through tax increases and cuts in spending, also suggests the economy will eventually have shrunk by 4.3% during 2009, but will record growth of 1.3% during 2010 and 0.8% in 2011. "We are likely to see an exciting policy mix, with the fiscal policy lever pulled right back while the monetary lever is fast forward," said Douglas McWilliams, chief executive at cebr.
 
 
©2007-2012 BWG Commercial Finance Specialists | Terms and Conditions | Terms of Engagement | Web Design by Source