THE chief economist at the Royal Bank of Scotland Group told a Bolton meeting about "A Tale of Two Economies".

Jeremy Peat was invited to the Reebok Stadium by the group's Bolton Corporate and Commercial Banking Centre in Deansgate, and his talk covered the decline in manufacturing and the relative strength of the country's service sector.

He told Bolton business people that all eyes were on the US economy in the hope that there would be a recovery in the next six to 12 months.

"We need the US to recover -- it is important to us," he said. "Think what you want about George W. Bush, but you should wish him well."

The Bank of England's Monetary Policy Committee meets tomorrow, but Mr Peat did not think there would be a further cut in the base rate below the five per cent level.

Looking to the future, he believed there would be one more cut in the current cycle.

He thought Britain's economy was better placed than others to cope with the effects of a world downturn and predicted a return to stability following the boom led by Internet-based technology.

"I am a great believer that boring economics is best," he said.

Mr Peat was introduced by Dave Jones, the RBS Group's regional manager, corporate banking.