Reeling out of recession

In February it was confirmed that the UK finally wheezed and wobbled out of the longest recession since the Great Depression. A 0.10% expansion in the economy since October was well shy of the expected 0.40% expansion and raises doubts over the UK's longer term recovery prospects. The longer term prospects for the UK base rate have also been thrown into the air. With the record budget deficit, the fragile state of the housing market and the continuing reluctance by banks to lend, all set against the rising spectre of an inflationary spike, Mervyn King & Co at the MPC are left in an une...