UK Economy Outlook

The recession could have been worse, but, it still threatens to give the sharpest 12 month decline in GDP on record. (-5.5%)

Despite a few promising signs, the Bank of England’s overall view is still largely pessimistic. They state it could take several years for bank lending to get back to normal. Recent figures on unemployment also present a pretty depressing view, especially for young workers. The Office for National Statistics said that 722,000 people aged 18 to 24 were out of work – one in six

Given state of economy and absence of inflationary pressure, the Bank hinted interest rates could remain close to 0% well into 2010

More analysis on outlook for UK at my other blog – Economic forecasts for UK 2010

Latest Bank of England Inflation report