UK interest rates will only reach 2% by 2014 - papers

Tax rises and spending cuts will continue over the next four years, said the CEBR, with a further weakening of the pound, falling to $1.40 and "possibly" below 1 euro, reports the BBC. The forecast factors in the government slashing the UK budget deficit by £100bn over the next parliament. About £80bn of this would come from spending cuts, said the CEBR, with an additional £20bn from tax rises. Economic growth would be severely limited by such public finance cuts, forcing the Bank of England to keep rates low to encourage borrowing, the CEBR has said.. "We are likely to see an exc...