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This article is for information only. It does not constitute advice. Chase Saunders Ltd does not provide services for savings, investments, mortgages or insurance. You should seek advice on these areas from a qualified financial advisor.
Interest rates set to drop
Article Category: Debt Management Help and AdviceDebt-laden borrowers could be set for some respite with the news that interest rates may fall to 4.5 per cent by the end of this year.
Economic analyst, Global Insight, which made the prediction, said today that this figure might even drop to four per cent in the first half of 2009.
Howard Archer, chief European and UK economist, said that these predictions are "based on the assumption that the UK will avoid recession, but will see extended below-trend growth".
He went on to say that with the increasing risks to the UK economy, however, there was "a real possibility that interest rates will fall further and faster than this".
"Specifically, we forecast GDP growth to be limited to 1.8 per cent in both 2008 and 2009, which would be the equal weakest performance since 1992," Mr Archer added.
The Bank of England monetary policy committee is set to meet again next Thursday to decide if there is to be any further movement on interest rates - they currently stand at 5.5 per cent.
Hard-pressed
borrowers are keeping their fingers crossed for good news.
For more information on debt management call our advisors on 08000 122 118 for FREE, no obligation help and advice. Created on 01/02/2008 12:06:46
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