UK Recession will be worse than feared
Disclaimer: THIS MATERIAL IS NOT INVESTMENT RESEARCH AS DEFINED BY THE FINANCIAL SERVICES AUTHORITY
The CBI confirmed this morning the UK recession will be longer and deeper than initially expected. Unemployment is expected to peak close to 3 million with interest rates expected to fall to historical lows. The recession is expected to last for almost all of 2009. The CBI are expecting interest rates to be cut by 0.25-0.5%, increasing further pressure on the depreciating pound.
Germany officially entered recession on Friday, sinking with a few other European counter-parts. Interestingly, Sterling is still very weak against the Euro.
Last week was a very tough week for sterling as it was battered by numerous currencies. The pound has been sold through some crucial support levels against both the Euro and the US Dollar, sterling is expected to fall much lower before any “real” support is seen.
Monday 17 November 2008, 11:02am
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