Newspaper article The Evening Standard (London, England)

Recession Will Be Worst for Decades Warns Bank Chief

Newspaper article The Evening Standard (London, England)

Recession Will Be Worst for Decades Warns Bank Chief

Article excerpt

Byline: HUGO DUNCAN

THE Bank of England today warned that Britain faces its deepest downturn in decades.

Deputy governor Sir John Gieve admitted there was little that can be done to limit the slump in the first half of this year.

He said the main challenge was to prevent a prolonged recession and a sustained period of falling prices, or deflation.

His comments raised hopes the monetary policy committee will cut interest rates again next month having reduced them from five per cent to a 315-year record low of 1.5 per cent since October.

In a speech in Manchester, Sir John said: "2009 is certain to be a difficult year for the UK and the global economy more generally.

In the UK, we expect the sharpest fall in output for decades while retail prices are likely to fall for the first time in almost half a century.

"Most of our major trading partners are also entering recession.

A decade or more of remarkable macroeconomic stability has come to a shuddering halt. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.