RTTNews - Friday, Bank of England's Monetary Policy Committee member, Paul Fisher said there are signs of slowing in the rate of contraction in the economy, but the U.K. should not be complacent. Although it is nice to say the worst is over, there are likely to be bumps in the road ahead with many twists and turns, he added.

He said, I see the major downside risk to output growth facing the U.K. economy as stemming from the difficulties of the financial sector.

Fisher said inflation is likely to continue to fall during 2009 as the effects of easing energy price inflation. As a result of the spare capacity in the economy, downward pressure on prices would possibly continue in the medium term.

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