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UK pic to buck global slump

UK plc to buck global slump The world economy will continue to deteriorate, but the UK's gross domestic product will grow by 2 per cent this year, according to a report from Ernst & Young. Peter Spencer, the firm's economic adviser, is concerned that the UK will undershoot its 1.5 per cent minimum

target for inflation and has called on the Bank of England to tackle the overvaluation of sterling. "An official exchange rate intervention programme is vital to bring the economy and its external trade closer to balance," Spencer said. "A lower pound would help to retarget inflation and transfer spending power from consumers to producers."

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