UK will avoid recession - Norwich Union

The insurer believes the economy could even start its recovery by the end of this year as it responds to lower interest rates. Stewart Robertson, a senior economist at Norwich Union, says weaker consumer spending will prompt an initial slowdown and house prices will remain flat, with falls in some areas. He says interest rates will fall to about 4.5% but the fall’s pace will depend on an improving outlook for inflation. Economic growth for the year looks set to drop below 2% from 3.1% achieved in 2007, according to Norwich Union data. Robertson says weaker growth and fears about the ...