Long Recovery For UK Economy Forecast

The UK Britain faces a long recovery and growth will be small in 2010, but the Bank of England is still set to raise interest rates early in the coming year, according to the CBI (Confederation of British Industry).

The lobby group have predicted, in their latest quarterly economic forecast, that the Bank of England will start raising interest rates from the record low of 0.5% from next spring with an expected 2% to be reached by the end of the year.

Despite forecasting growth of just 0.3 percent in the first two quarters of 2010 the CBI believe that policy makers will be eager to return rates to a more normal level. (more…)