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Jobless Totals Pressure Lowering The I R Rates

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Perhaps another deep recession warning?



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09:58 - 21 March 2006

Rising unemployment could force the Bank of England to cut interest rates this summer, a top economist has predicted. Dennis Turner, HSBC's chief economist, told business leaders in Gloucestershire that the increase in the jobless total would hold back economic growth this year.
at a time of continued record levels of household debt and the impact of higher taxation
, the Bank is likely to have little choice but to ease the cost of borrowing from its rate of 4.5 per cent, possibly in June or July.
"Watch the unemployment figure carefully this year, " Mr Turner told the meeting jointly staged by Gloucestershire First and the South West Regional Development Agency.
It has gone up by around 100,000 over the past year to more than 900,000 and that trend will continue.

Gordon's Miracle Economy may be at an end as indicated by the disaster that will follow either a rate hike or a rate drop. IMHO, a hike is the lesser of two evils as a drop will hit sterling hard and raise the price of our imports upon which greater dependency now exists given the loss of oil independence. We are just going to have to bite the bullet, sit back, and endure a few years of recession, lower house prices and falling rents.

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  • 336 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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