CBI sees end to credit crunch in '09

In its latest economic forecast, the CBI says the UK economy will begin to stabilise over the next six months ahead of a gradual recovery, although it says growth in 2009 will be “feeble at best”. It predicts the country will this year enter a technical recession - with two consecutive quarters of negative growth – and says it has cut its GDP growth forecast for 2008 from 1.7% to 1.1%. In addition, it says it expects CPI inflation to hit a peak of 4.8% this quarter before falling to close to the Bank of England's 2% target by the end of 2009. Richard Lambert, CBI director-general, say...