UK Recession Very Likely - 29th Mar 2008 8:59pm
Originally Posted by BBC News
There is a one in three chance of the UK going into a recession over the next two years, according to investment bank Lehman Brothers.
It says the global financial turmoil is increasing mortgage rates and predicts this will reduce consumer spending.
Lehman Brothers says the Bank of England will be forced to cut rates to 4% or lower to boost the economy.
The report comes as the latest revised official figures cut the annual rate of UK growth at the end of 2007 to 2.8%.
The annual growth rate in the October to December quarter was trimmed from an earlier estimate of 2.9%, and was the lowest rate since the second quarter of 2006.
It says the global financial turmoil is increasing mortgage rates and predicts this will reduce consumer spending.
Lehman Brothers says the Bank of England will be forced to cut rates to 4% or lower to boost the economy.
The report comes as the latest revised official figures cut the annual rate of UK growth at the end of 2007 to 2.8%.
The annual growth rate in the October to December quarter was trimmed from an earlier estimate of 2.9%, and was the lowest rate since the second quarter of 2006.
And people will still vote in these fookin Labour ... next time round!!!
This country is going down and fast!! And im sorry, but the people have themselves to blame.
BBC News Report