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Article: Brown fuels clamour for Bank to cut interest rates Monetary policy: Pressure mounts on Bank of England as growth forecasts are slashed
- Article from:
- The Independent (London, England)
- Article date:
- October 7, 1998
- Author:
CopyrightCopyright 1998 The Independent - London. Provided by ProQuest LLC. (Hide copyright information)
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PRESSURE ON the Bank of England to cut interest rates intensified
last night after Chancellor Gordon Brown slashed his growth forecast
for next year and new figures showed the engineering industry in
recession and bankruptcies on the rise.
On the stock market, the FTSE100 Index staged its biggest one-day
points rally ever, gaining 205.3 points or 4.4 per cent, as dealers
looked forward to a rate cut from the Bank's Monetary Policy
Committee on Thursday. It starts its two-day meeting today.
The pound also slipped by a further two pfennigs against the
German mark although it rallied later in the day to close unchanged
at DM2.7630.
Speaking in Washington, Mr Brown indicated that output next ...