Bank Tipped to Cut Rates As Deflation Risk Looms

Evening Standard - London › November 25, 2008

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Summary

THE City was today betting on another deep cut in interest rates as Britain faced up to a dangerous bout of deflation.

Economists said the cut in VAT from 17.5% to 15% would push the Consumer Prices Index rate of inflation below the 0.5% forecast by the Chancellor in the Pre-Budget Report.

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Extract

Bank Tipped to Cut Rates As Deflation Risk Looms

A period of deflation looks a real possibility as the VAT holiday and tumbli...

See the full content of this document