BOE may have to lower rates again - papers 8th September

The Guardian reports the Organisation for Economic Cooperation and Development (OECD) has sharply cut its forecast for the UK this year and warned the Bank of England might need to cut interest rates further to boost flagging growth. According to the OECD Britain’s economy will grow by 1.9% in 2005 - barely more than half the rate predicted by the chancellor, Gordon Brown, in the budget. And it said there was a risk rising oil prices and the knock-on effects on global growth from Hurricane Katrina could result in a more sluggish performance by the UK economy this year, says the paper. ...