UK back in recession and no rate rise until 2016 - CEBR

clock

The UK is already back in recession and will not see any interest rate rises until at least 2016, according to the Centre for Economics and Business Research (CEBR).

The think tank said it estimates the UK economy contracted in the last quarter of the 2011 and this negative trend has continued into Q1 this year, constituting a recession. It has slashed its expectations of the UK's growth for 2012 from the 0.7% it forecast in October to a 0.4% fall, the Telegraph reports. An even more painful contraction of 1.1% looms if the eurozone crisis worsens, the forecaster warned. Separate forecasts from the Ernst and Young ITEM Club agreed the UK is likely already in a recession, blaming the "paralysed" recovery on political uncertainty in Europe. Do...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Five key takeaways from the Spring Statement 2025

Five key takeaways from the Spring Statement 2025

OBR growth, ISA reforms and defence

Sorin Dojan
clock 27 March 2025 • 4 min read
Bank of England halts interest rate cuts amid ongoing inflation

Bank of England halts interest rate cuts amid ongoing inflation

As priced in by markets

Sorin Dojan
clock 20 March 2025 • 2 min read
More work needed to tackle inflation as BoE members warn of further market turmoil

More work needed to tackle inflation as BoE members warn of further market turmoil

BoE MPC members spoke at Treasury Committee hearing

Sorin Dojan
clock 06 March 2025 • 2 min read