The UK will escape a recession this year, the IMF said on Tuesday, adding that the country’s economy had been “buoyed by resilient demand in the context of declining energy prices”.
But the fund cautioned that Britain risked being stuck with persistent inflation unless interest rates stay high for longer.
“Economic activity has slowed significantly from last year and inflation remains stubbornly high,” the fund said, while adding that “the outlook for growth, while improving somewhat in recent months, remains subdued”.
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