Economics

Quarterly growth of 0.9% projected

Households and businesses should be told that borrowing costs will remain at rock-bottom levels until the economy is motoring again, the International Monetary Fund has said.

The UK will narrowly escape a triple-dip recession with economic growth for Q1 forecast to be 0.1%, acccording to the National Institute of Economic and Social Research(NIESR).

UK GDP contracted 0.3% in the last quarter of 2012, according the second reading of the data.

Incoming Bank of England (BoE) governor Mark Carney intends to place economic growth at the top of his priority list when he takes on his new role.

UK GDP contracted 0.3% in the final quarter of 2012, a worse than expected figure that raises the spectre of a triple-dip recession.

Bank of England governor Mervyn King has said the UK economy may contract once again in the fourth quarter of 2012 despite moving out of recession in Q3.

The UK will return to growth in the second half of the year fuelled by consumer spending power despite exports continuing to disappoint, according to Ernst & Young's latest forecast.

The Consumer Prices Index (CPI) rate of inflation climbed to 2.6% last month, from 2.4% in June.

Bank of England (BoE) governor Mervyn King has warned against a further cut in interest rates, arguing it would damage the banking sector and may be "counterproductive".