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

News editor's view: Burnham's Britain arrives

News editor's view: Burnham's Britain arrives

The news editor's Friday Night Takeaway from 24 July

Isabel Baxter
clock 24 July 2026 • 3 min read
UK inflation drops to 2.6% to bring 'fleeting' relief as fuel prices fall

UK inflation drops to 2.6% to bring 'fleeting' relief as fuel prices fall

BoE rate hike priced in for 2026

Michael Nelson
clock 22 July 2026 • 2 min read
Andy Burnham to launch ten-year plan for UK

Andy Burnham to launch ten-year plan for UK

Cost of living measures to be set out

Jaskeet Briah
clock 20 July 2026 • 3 min read