CBI cuts economic growth forecast

The expected global slowdown has led the CBI to shave 0.2 percent off its forecast growth for the UK economy.

The expected global slowdown has led the CBI to shave 0.2 percent off its forecast growth for the UK economy.

It also predicted that interest rates may fall by 0.25 percent to 5.25 percent in the next six months.

The CBI said that is likely provided the Government delivers a cautious Budget.

The economy would grow by 2.5 percent this year, compared to 2.7 percent previously predicted.

The CBI's forecast also said household spending is expected to slow over the next two years.

Unemployment is expected to fall to 1.57 million by the end of this year and 1.53 million by the end of next year, claimant count unemployment is set to fall to a million by the end of 2002 and employment is forecast to rise by 399,000.