Low Growth: ‘Britain faces bleak years ahead’
Britain faces a “bleak time” over the next two years due to low economic growth.
LONDON:
Britain faces a “bleak time” over the next two years due to low economic growth, the Bank of England’s chief economist said on Saturday. Spencer Dale indicated that interest rates would rise this year. They were held at a record low of 0.5 per cent this month, as anaemic British growth offset surging inflation. Britain’s central bank had held the rate for more than two years. “I think the next year or two will be a relatively bleak time. I think we have relatively hard times ahead,” Dale told the BBC. “I am even more worried about inflation and the risk that we may see price pressures from the rest of the world continue to push up,” he said. Despite high inflation, the central bank had refrained from hiking its key lending rate due to Britain’s weak recovery from recession.
Published in The Express Tribune, May 29th, 2011.
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