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Notices

2010-08-11 11:24:12

Fears of a double dip

The Fed downgraded its economic outlook and extended the £2.3bn quantitative easing programme. In the UK the Bank of England is now more pessimistic about the outlook for growth and believes inflation will stay above the 2% target for longer than it forecast in May. The Bank believes growth will be around 2.5% nest year lower than the 3.4% forecast 3 months ago. Market fears of drawn out recoveries or, worse, double dip are compounding.