No recession after all, say Bank experts

THE Bank of England made a stunning U-turn yesterday to say it no longer expects an immediate recession – just four months after predicting a two-year downturn.

November’s forecasts painted a grim outlook with the economy shrinking for eight quarters in a row to mid-2024. But governor Andrew Bailey said yesterday that while the UK was not yet ‘off to the races’ he was ‘a bit more optimistic’.

The outlook was boosted by Budget help with energy bills and stronger businesses.

The bank still expects the economy to shrink by 0.1 per cent in the first quarter of 2023 but now says it should grow slightly in the second quarter.

The Office for Budget Responsibility has also dropped its forecast of a UK recession.