Interest rates set to fall to 4.5% by year end

Posted 2008-02-16

Interest rates are set to fall to 4.5% by the end of 2008 according to research by Global Insight. The financial research company also believe rates will drop further to 4% by mid 2009.
Howard Archer, Chief European and UK Economist for Global Insight said:
“We currently forecast interest rates to fall to 4.5% by the end of 2008 and to 4% by the first half 2009. This is based on our assumption that the UK will avoid recession, but will see extended below trend growth.”
On top of falling interest rates, the company also believes the UK’s GDP growth will be limited to 1.8% between 2008 and 2009 - the equal weakest performance since 1992.

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