Risk of UK double dip recession

Britain faces the risk of sliding back into recession and the central bank’s growth forecast for this year and next may be too optimistic according to a senior Bank of England economist.

Martin Weale, who is a member of bank’s Monetary Policy Committee, also said in a newspaper interview that he did not think there was a substantial risk of inflation spiralling out of control in the UK.

Britain’s economy emerged from an 18-month recession at the end of 2009 and its robust growth since then has surprised analysts.

However, tight credit, government spending cuts and weak consumer confidence have been cited as serious risks to the recovery.

Weale’s comments helped push the pound to a one-month low against the dollar.

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