Dire outlook for British economy

The Organisation for Economic Cooperation and Development (OECD) warned the Bank of England (BoE) needed to press ahead with interest rate cuts, as the treasury is running out of options to produce further tax or spending boosts to help the ailing British economy. Britain has been identified as being among several economies that look particularly vulnerable along with Hungary, Iceland Spain and Turkey. The OECD urged the BoE to continue its policy to cut rates as the ‘negative wealth effects on household consumption from falling house prices and financial wealth may be greater than assumed’.