Mervyn King, the governor of the Bank of England, says that “it now seems likely” the country will enter recession.
According to King the fall in net wages and global market turmoil leave the country facing a “sharp and prolonged”, “unprecedented” in living memory downturn, caused by credit crisis.
To survive in tough economic time the Bank’s monetary policy committee is expected to cut interest rates from present 4.5% to 2.5% by next year, reports the Guardian.
The report from the Confederation of British Industry confirms Kings speech in some ways, indicating the condition of manufacturing sector at its lowest level since 1980.
L.D.