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