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Bootle predicts 0.5% base rate for next five years

Roger Bootle, the managing director of Capital Economics, forecasts that interest rates in Britain will remain at their current level for the next five years.

He made the prediction at an investment summit in Dublin held by Mortgage Strategy’s sister publication Fund Strategy.

Bootle, one of the few economists to predict the current crisis, says that while the market expects rates to rise soon—exceeding 3% by the end of 2011—he anticipates no change in American, eurozone or Japanese rates in the next two years at least.

But in Britain he is confident rates will remain at 1% for the length of any new parliament.

To read the story in full, click here.

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