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UK remains in recession

UK GDP figures show that the British economy remains in recession after contracting again in the third quarter.

A 0.2 percent quarter-on-quarter rise had been forecast but it actually came in at -0.4 per cent for July to September. This means the UK has suffered six consecutive quarters of negative growth, the longest recession the country has seen. Although a quick recovery was hoped for, it looks as though this recession could continue for some time.

Such disappointing figures point to a likely extension of quantitative easing by the Bank of England Monetary Policy Committee when it meets on 5 November. At the same time, interest rates are set to stay at 0.5 per cent for many months to come.

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