Weak Growth Prompts Predictions of Rate Cut
Analysts predict interest rate cut as economy weakens
28th September 2005
City analysts have predicted a further cut in interest rates before the end of the year, as figures show continuing sluggish spending and economic growth.
The official annual growth figure has been revised back from 1.8% to 1.5%, which makes it the weakest annual figure since 1993.
As low growth tends to mean lower inflation, the Bank of England has some room to boost the economy by lowering rates without risking overshooting it's 2% inflation limit, say commentators.
Read More: Money Guardian : Analysts predict cut in interest rates
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