Ernst & Young ITEM Club says UK economy flirting with recession; Bank of England MPC member calls for interest rate cut
Jul 21st, 2008 | By Finfacts Ireland Business & Finance Portal | Category: News worldwide
The Ernst & Young ITEM Club summer economic forecast released today sees an economy that will struggle to avoid recession in 2009 with predicted GDP growth of 1.0%. ITEM expects inflation to remain above the target range of 1 to 3% for the next 12 months and there will also be a substantial increase in the numbers of unemployed. Meanwhile, a member of the Bank of England's interest rate setting Monetary Policy Committee (MPC) has said that the UK needs an immediate cut in interest rates to avoid a prolonged recession.