Ruth Mitchell

Member Article

Recession worries continue at Bank of England

The Bank of England believes there is a one in ten chance the UK will suffer a double dip recession over the next 18 months, according to the Telegraph.

The latest forecasts are the most negative since February last year, and worse than May 2008 at the start of the recession.

This news emerged after two members of the Banks rate committee abandoned their idea of raising rates by a quarter and joined the majority view for rates to remain at 0.5 percent.

The minutes of the meeting also show the committee discussed further stimulus to help the recovery, such as adding a further £50 billion to the £200 billion of quantative easing. However, a majority of members voted against this.

Economists now anticipate that rates will not sure until the middle of 2013.

The Bank also warned that the slowdown in the economy has knocked exports and business confidence, which could discourage investment, and in turn slow the economy.

This was posted in Bdaily's Members' News section by Ruth Mitchell .

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