The UK should brace itself for a "long, hard path" to recovery despite the prospect of an upturn next year, the Bank of England said today.

The UK economy recorded its sharpest decline in more than 50 years during the first quarter of 2009, figures showed today.

Official figures are today expected to show the UK suffered its first bout of deflation in almost 50 years last month.

Figures are today set to reveal the measure of inflation used in wage negotiations turned negative in the UK for the first time since 1960 last month.

A smaller-than-expected drop in the British inflation rate today failed to ease fears that the UK could soon be in the grip of deflation.

The Bank of England said today that £5bn (€6.3bn) was pumped into its coffers on Friday as some UK banks took advantage of the cash flooded into money markets last week.

Banks spurned a £10bn (€14.4bn) loan facility from the Bank of England for the second week in a row today.

The UK’s economy grew at a slower pace than expected at the end of last year, official figures revealed today.

THE Bank of England is expected to leave interest rates on hold this week after it raised the cost of borrowing last month for the first time in two years.

The case for a further cut in interest rates was reinforced today after inflation stayed below target for a second month running in January.

The rising cost of petrol and soaring household energy bills look set to send inflation back above the Bank of England’s target today.

The Bank of England is widely expected to keep the cost of borrowing on hold this month with economist predicting it will put off cutting rates until later this year.

Food prices are thought to have helped drive inflation in the UK to its highest level since 1998 last month, experts will announce today.

The health of the UK's manufacturing sector continues to deteriorate, experts warned, after it emerged today that factory output had declined for the first time in more than two years.

The Bank of England kept higher borrowing costs at bay for millions of homeowners today by freezing interest rates for the eighth month in a row.

The UK economy grew by an estimated 3.1% in 2004 after the pace of expansion accelerated over the final three months of the year, it emerged today.

Hopes of an early cut in British interest rates appeared to be dashed today after a report showed that it was not currently in the thinking of policymakers.

Rising energy bills and transport costs fuelled a surprise hike in inflation in Britain today – increasing the chances of another interest rate rise there.

A tough summer for industrial-based firms was blamed today for the British economy’s weakest quarter of growth since early last year.

Inflation in Britain was at its lowest level since March today after figures for September showed the annual rate had fallen by 0.2% to 1.1%.

British economists were split today on whether millions of households will face higher borrowing costs this week.

The UK trade deficit with the rest of the world hit a record £13.7bn (€20.4bn) in the first three months of the year, official figures showed today.

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BRITISH inflation slipped in February after shops offered discounts on clothes, toys and electronic goods, suggesting the Bank of England has time to wait before it raises interest rates again.

Pizza Express was today hoping that size really does matter after the troubled chain failed to land a sales revival in the run-up to Christmas.

After a tumultuous year on the stock market UK analysts are predicting better news for investors in 2003.

Federal Reserve chairman Alan Greenspan chose to steer a steady course today and leave US interest rates on hold for the third time this year.

The US Federal Reserve yesterday continued its campaign of interest rate cuts by trimming interest rates by a quarter-point the eleventh cut this year.

Alan Greenspan has taken another step towards shoring up the US economy by trimming interest rates by a quarter-point.

Rising petrol and food prices are expected to lead to a slight rise in the underlying rate of inflation today.

Weaker-than-expected manufacturing figures are fuelling the argument for the Bank of England to cut interest rates next month.