Investment Property News - Bueno Investments Limited

Policymakers at the Bank of England will trim interest rates at least three
times this year and provide a boost to the buy-to-let market, a new report
claims.

Ernst & Young's Item Club predicts the Bank's Monetary Policy Committee will cut the cost of borrowing to 4.75% or even lower by 2009 in an effort to
prevent a recession.

It also believes investors are still in good shape and will see see further
gains this year as the credit crunch which caused turbulence in money
markets is now beginning to ease.

But the economists expect UK GDP will drop from 3.1% last year to 1.8% in
2008 as the economy experiences a painful "rebalancing", although it added a
full-blown recession remains unlikely.

Peter Spencer, chief economic adviser to the Item Club, said: "We are facing
serious problems as a nation of borrowers, particularly the Chancellor.

"However, it is important to put these into perspective. The economy is
fundamentally sound, the problems in the inter-bank market seem to be
resolving themselves, employment is high and inflation under control despite
the inflationary threats from world commodity and currency markets."

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http://www.buenoinvestments.com/uk_property_investment.php (UK property)

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property)

http://www.ey.com/global/content.nsf/International/Home (Ernst & Young)