Chances of recession slim, says Bank of England

The UK has only a one in 10
chance of going into recession, according to the Bank of England.

Mervyn King, the Bank of
England’s deputy governor for monetary policy, explained, "The important big
picture is that the UK has withstood the slowdown that hit the rest of the
world economy. Of course we have been affected, but that’s been less marked in
the UK than elsewhere."

His comments followed the Bank
of England’s quarterly inflation report that suggested that the UK was likely
to enjoy steady growth over the next two years.

The report suggests that
underlying inflation was more likely to end the two-year period above the
Government’s 2.5 per cent target than below it, reports the Financial Times.

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