econ-Journal35 - 2 in December and then still further to...

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Duc Hoang – ECON210 Journal Interest-rates outlook: Plumbing new depths The Economists November 15 th  -21 st, 2008   The article mentions the concept of easy money policy when stating that “Bank of  England signals more cuts to come”. Great Britain has been experiencing a  recession in its economy. The central forecast showed a 2% GDP falling to  negative level in the year to the second quarter of 2009. Interest rate cut is being  welcome more than ever. Simon Hayes, an economist at   Barlays Capital, an  investment bank, said he expected the base rate to fall a full percentage point to 
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Unformatted text preview: 2% in December and then still further, to 1.5% in January and 1% in February. The upswing is supposed to come as domestic demand rises, thanks to lower interest rates. However, troubles still exist. Heavily indebted consumers will want to mend their own finances by saving more, not least in a climate of job losses. Exporters may be more competitive but they will be held back by the global downturn. With all these obstacles, economies should not bounce back from them in a hurry....
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