[iOqedeyH]

Bloomberg
Published: February 07, 2009, 23:00

London: The UK economy plunged further into recession in the three months through January, the National Institute of Economic and Social Research (Niesr) estimated.

Gross domestic product contracted 1.7 per cent, compared with a 1.5 per cent drop in the period through December, said Niesr, whose clients include the Treasury and the Bank of England.

Prime Minister Gordon Brown has pledged hundreds of billions of pounds to get banks lending again as Britain is confronted with its worst slump since the end of the Second World War.

The central bank cut the benchmark interest rate to 1 per cent on February 5 to revive growth and has been granted unprecedented powers to buy assets from private companies.

"The rate of contraction shows, so far, little sign of easing," Niesr said in a statement.