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

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

The CEBR 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. Douglas ...