King Warns of Slow Recovery Recession 'Deeper Than First Thought' As Rates Set to Stay Low Well Into Next Year
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Summary
UK base rates look increasingly likely to remain at a record low of 0.5per cent well into next year, after the Bank of England yesterday highlighted a raft of factors which could hinder economic recovery and projected benign inflation.
In spite of a slew of economic indicators which have in recent weeks suggested the UK economy is close to emerging from deep recession, Bank of England Governor Mervyn King warned yesterday: "We will still find ourselves in a difficult position for a long time to come."See the full content of this document
Extract
King Warns of Slow Recovery Recession 'Deeper Than First Thought' As Rates Set to Stay Low Well Into Next Year
And the Bank of England's latest inflation forecasts signal that financial markets might have been too hawkish in projecting that UK base rates will start rising early next year.
King emphasised, as he launched the Bank's latest quarterly inflation report, that this was not a "normal" recession and hammered home his view that recovery wo...See the full content of this document
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