CBI trims UK economic growth forecast

It now sees growth dipping to 1.8pc this year and 1.7pc in 2009, as a result of persistent problems in the credit markets, rising inflationary pressures and weak domestic and global demand. The revised forecasts compare with those of the Treasury, which expects growth of 1.75-2.25pc this year and 2.25-2.75pc in 2009. Inflation is also expected to rise further, with CPI inflation set to peak at 3.2pc in Q3 2008. With price rises then expected to ease, interest rates are tipped to fall to 4.5pc by early 2009. Richard Lambert, the CBI's director-general, said: "Having enjoyed two years o...