Deep recession `unlikely'

EDDIE GEORGE (left), Governor of the Bank of England, said last night that the Bank's next economic forecasts, due out in early February, were unlikely to show the UK slipping into deep recession. He told the Institute of Manufacturing: "Frankly, I'd be surprised if our central projection were to suggest that the economy as a whole was falling into steep or protracted recession".

However, Mr George warned that the global economic slowdown could mean more pain for manufacturers in Britain. He stressed the Monetary Policy Committee would not hesitate to cut interest rates again if it believed inflation was likely to fall below the target.