Despite the credit crunch and financial markets turbulence, the UK should avoid an all-out recession, it has been suggested.

The Intermediary Mortgage Lenders Association (IMLA) predicts that such an eventuality may yet be avoided.

A recession, by definition, occurs when the economy records two consecutive quarters of negative growth.

But IMLA executive director Peter Williams says: "Key participants in industry remain confident that we can steer clear of an all-out recession.

"There are also pockets of greater optimism - surprisingly enough in the south-east, for example."

In a recent survey by the organisation, 44 per cent of respondents anticipated that two quarters of negative growth may occur.

But the majority expressed the opinion that one or fewer quarters are likely to see a downturn.

The IMLA previously expressed support for the Bank of Englands monetary policy committees decision to reduce the base rate of interest by a quarter of a percentage point in April.

However, the organisation added that a half percentage point cut may have been a wiser move to make.ADNFCR-8000200-ID-18576687-ADNFCR

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