FCUK sells of Nicole brand

FRENCH Connection is selling its Nicole Farhi label and closing most of its US stores as it seeks to return to profit following a widening in annual losses.

Read Full Story

Have Your Shout

RBS elite get a 100% rise

ROYAL Bank of Scotland has awarded investment bankers huge pay increases as it fights to retain staff.

Read Full Story

Have Your Shout

Get posting in the Star Forums!

You can join the debate and post your own views in the lively Daily Star Forums!

LOW INTEREST RATES UNTIL 2015

ABOVE: Low interest rates until 2015

11th December 2009

By Daily Star Reporter

Your Shout ( 0 )

INTEREST rates are likely to remain close to record lows for up to five years, a leading economist forecast yesterday.

Speaking after the Bank of England kept them on hold at 0.5%, Deloitte adviser Roger Bootle said the Bank might also be forced to increase its quantative easing cash injection from the current £200billion.

He added that the “non-event” of Wednesday’s Pre-Budget Report “merely delayed the inevitable” – the need for Government to tackle Britain’s debt black hole by cutting spending and raising tax.

Bootle warned: “A prolonged period of low interest rates will be required to allow the economy to withstand the looming fiscal austerity.

“My money is on bank rate staying at 1% or lower for five years.”

His comments came as fears mounted in the debt markets that the UK may lose its AAA credit rating following lack of action in tackling debt.

The price of Government gilts tumbled.

“The market is looking for the next domino to fall,” said Royal Bank of Scotland strategist Jason Simpson. “The Chancellor didn’t take any of the more tricky decisions.”

» MORE 'IT'S THE BUSINESS' HERE...

Share @: