Recession 'risk' says forecaster
Posted on 28 January 2008
There is a risk that the UK economy could "slip into a full-blow recession", a report by finance company Deloitte & Touche warns.
And the housing market could be on the brink of "the big one", with price falls of 5% in 2008 and 8% in 2009, the report suggests.
In the latest issue of the quarterly Deloitte Economic Review, adviser Roger Bootle says that the slowdown in the UK economy "looks set to be a fundamental adjustment rather than a brief pause for breath". He warns that relatively strong economies in Asia and Europe won't offset the effect that a slowdown in the US will have on the UK economy.
Although the review's key points make bleak reading for homeowners, Mr Bootle says that there is still time for policymakers to act to avoid a full-blown recession. Among the review's forecasts is that the Bank of England will lower interest rates to just 4% during 2009.
Category: Mortgages, Personal finance, Property
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