|
British interest rates 'set to follow' U.S. to ZERO per cent all-time
low
UK
Daily Mail
Wednesday, Dec 17, 2008
The U.S. Federal Reserve shocked the world last night by slashing
its benchmark interest rate close to zero and declaring it would
pump out vast amounts of cash to businesses and consumers in a
bid to beat recession.
The central bank set the official rate to between zero and 0.25
per cent. Experts say the move could be copied within months by
the Bank of England.
While this could help stimulate the British economy, it would
be dire news for the nation's savers - who outnumber borrowers
by seven to one.
But there was good news for Britons heading across the Atlantic
- the pound leapt against the dollar, rising almost 10 cents to
$1.57.
(ARTICLE CONTINUES BELOW)
British interest rates currently stand at 2 per cent, but Roger
Bootle, adviser to the accountants Deloitte, said the Bank of
England must cut them 'as far as it can'.
He said: 'It won't be long before interest rates are reduced
to one per cent, and they may ultimately have to fall all the
way to zero.'
Last night's move represents an extraordinary throw of the dice
by the Fed's chairman Ben Bernanke.
Full
article here
|
INFOWARS:
BECAUSE THERE'S A WAR ON FOR YOUR MIND
|
|
