Tuesday, September 16, 2008
CBI forecasts 1% Interest Rate Cut this year! Oh boy.
The CBI's economists say that the Bank of England should have scope to cut interest rates after inflation peaks this autumn, at around 5 per cent, and is clearly on a downward path. The CBI envisages a bold cut of 0.5 percentage points in November, followed by two quarter percentage point cuts in "early 2009", which would leave Bank Rate at 4 per cent.