IMF says it no longer expects UK recession this year

The UK will escape a recession this year, the IMF said on Tuesday, adding that the country’s economy had been “buoyed by resilient demand in the context of declining energy prices”.

But the fund cautioned that Britain risked being stuck with persistent inflation unless interest rates stayed high.

“Economic activity has slowed significantly from last year and inflation remains stubbornly high,” the fund said in the periodic…