The Bank of England has delivered a note of cautious optimism with the suggestion that the worst of the recession may be behind us. In its quarterly Inflation Report, the central bank issued a forecast predicting that the pace of decline in gross domestic product (GDP) will slow this year, though it did warn that recovery could take longer than previously understood.
The Bank's forecast predict that GBP would fall by around 4.5 per cent annually at the start of the second quarter, with growth expected to resume at the start of next year. That growth should have reached 2.5 per cent in two years time.
The Bank's caution of a slow recovery prompted analysts to state that interest rates would remain low as the economy recovered. In a vivid illustration of the continued difficulties facing the UK, the announcement comes just one week after the Bank announced it would raise the budget for quantitative easing from £75 billion to £125 billion.
The forecast will not be well received by Chancellor Alistair Darling, whose prediction that the economy would shrink by 3.5 per cent this year will be the subject of heavy inspection following the latest Inflation Report.
Bank of England Warn of Gradual Recovery
Financial Services > e-banking > Banking news
Bank of England Warn of Gradual Recovery
Wed, 13 May 2009
Recommended links
Leading Current AccountsTax Free ISAs
Reclaim Bank Charges
Banking FAQs
E-banking providers
Bank Begins Using New Money
Best Savings Accounts
Bank of England to Inject Further Funding
Pressure for Bank of England to Cut Rates Further Following Home Loan Figures
Bank of England Reveals GBP185 Billion Loans to Banks
Bank of England Holds Interest Rates
Bank of England Slashes Base Rate Again
Bank of England Cuts Interest Rates
Bank of England Begins Quantitative Easing
Three Directors Leave Bank of England
Bank of England Expected to Slash Rates Again
Bank of England Cut Leaves Interest Rate at Lowest Level in 53 Years
Bank of England to Reveal Savings Slump
Bank of England Cuts Interest Rate
Bank of England Issue Stark Warning of Deep Recession
Bank of England Reveals Plummeting Interest Rates for Savers
Bank of England Holds Interest Rates at 5 per cent
Bank of England Cuts Rates
Bank of England Reveal Miserly Average Savings Rates
Bank of England Cuts Rates Again
Bank of England Leave Rates Untouched
Pensioners Suffer from Bank of England Cuts
Bank of England Urged to Cut Emergency Loan Rate
Bank of England Members Voted 8-1 in Favour of Cut
Bank of England to Launch Scheme to Help Banks
Bank of England Declare UK is Entering Recession
Bank of England Borrowings Swell Further
Bank of England Criticised for Failing to Offer Support
Bank of England Governor Warns of Deposit Charges
| Banking news |
|---|
| Banks failing on online fraud says MPs report - Tue, 05 Apr 2011 |
| Lloyds TSB is to change the interest rates on its Vantage current account - Thu, 31 Mar 2011 |
| Contactless debit cards from Lloyds TSB - Tue, 29 Mar 2011 |
| More News |
Simplyhealth Dental Plan
Affordable cover from only £7.50 per month. Join now and get first month FREE
Amex Cash Back
Credit Card
Credit Card
Get 5% cash back on purchases with Amex
Income Protection Insurance
Get an instant quote with the award winning company