THE UK is on track to avoid recession next year, according to the Bank of England.
The bank said recession would be avoided despite heightened uncertainty globally following the New York attacks on September 11.
While growth in the UK is likely to drop next year, recent interest rate cuts would help the economy to bounce back as confidence recovered.
The comments came as the bank published its quarterly inflation report, and admitted there were signs of gloomier times ahead.
The jobs market was likely to turn and consumer spending could slow as unemployment rises.
But Mervyn King, a member of the bank's monetary policy committee, said the chance of a recession was slim.
"The committee does not believe that a recession is the most likely outcome," he said
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