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Interest rates set to plunge to 0% as figures reveal economy is
shrinking twice as fast
UK
Daily Mail
Wednesday, Dec 10, 2008
Interest rates may have to be cut to zero after
it was revealed the economy is contracting at a much faster pace
than experts predicted.
Britain's gross domestic product fell by one per
cent in the three months to November and will probably plunge
by even more in the final quarter of the year, according to the
respected National Institute for Economic and Social Research
(NIESR).
The worse-than-expected contraction could force
the Bank of England to reduce the cost of borrowing to zero per
cent in the New Year as it battles to stop the recession turning
into a slump.
The latest dire economic forecast came as the Pound
hit a record low against the euro and the markets rated Britain
a greater credit risk than the fast food chain Mcdonald's.
(ARTICLE CONTINUES BELOW)
One euro is now worth just 87.43p - sterling's weakest value
since it was introduced in 1999, fuelling fears it could eventually
reach parity against the single currency and the US dollar.
The pound has now sunk nearly 20 per cent against the euro in
the past year as UK interest rates have been slashed from a peak
of 5.75 per cent to two per cent.
Mark O'Sullivan, director of trading at Currencies Direct, said
he expected to see a 'series of record lows' for the pound against
the euro in the run-up to Christmas.
'I don't think we'll see parity but you can never rule it out,'
he warned.
Full
article here
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INFOWARS:
BECAUSE THERE'S A WAR ON FOR YOUR MIND
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