Economy to experience 'shallow' recession

The UK economy will suffer a moderate recession this year, the CBI has forecast. Growth in the second half of 2008 will fall, the employers' group said, while next year will see only weak expansion. However, the CBI said it believes that inflation will return to close to its target of 2 per cent in 2009 and that the Bank of England will opt to cut interest rates, perhaps as early as November, in an effort to restore business confidence. [more]