Citi: UK interest rates to remain ultra low until 2017

The investment bank said it expects the Bank of England to maintain rates at 0.5% until mid-2017, the Mail reports. The central bank cut rates to this level in March 2009 at the height of the financial crisis. Citi cut its 2013 growth forecast from 0.8% to 0.4% and said output will rise by only between 0.5% and 1% in 2014 – far below the Treasury’s estimates. It said the Bank of England will leave interest rates at 0.5% until mid-2017 – a year longer than expected – as it battles to restore the economy to health. Citi also said it expects ratings agencies could strip the UK of i...