In England, the economy is set to shrink and inflation will plague the nation, but The Bank of England is trying to set a softer landing, with another rate cut.
It will cut interest rates even below their current half-century low, as the economy has already settled into recession mode and will most likely contract more in 2009, reports Sumeet Desai and Christina Fincher for Reuters.
Annual inflation, which is at 5.2%, would fall to just below 1% in two years, half the central bank’s target, it forecast a week after making a surprising 1.5% interest rate cut to 3%.
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