UK Recession Confirmed
Posted: November 12, 2008 Filed under: In the News Leave a comment »It has been confirmed by the Bank of England that the UK entered recession in the middle of 2008. It is believed that the recession will continue well into 2009.
In its quarterly inflation report, the Bank stated that the economic climate has changed markedly since August. The Bank now expects inflation to decline to 1% by 2010, well below its 2% target.
The Bank of England projects that the UK economy will contract 2% by early next year. Unemployment figures have hit an 11-year high, while sterling continues to decline on international markets.
Markets are expecting interest rates to drop below 2% within a year, the lowest Bank of England base rate since it was established in 1694.