The Bank of England forecasts economic growth and inflation in U.K. meanwhile warning that recovery just begins and “its strength remains highly uncertain”, forbes.com reads.

“While other major economies like the United States, Japan and Germany have recently recorded a return to growth, Britain remains officially in recession, shrinking 0.4% in the third quarter,” the source reads.

Britain was mostly hit hard by the global crisis as has a huge financial sector, “where the government was forced to carry out a multibillion pound bailout of major banks, and higher levels of personal debt among consumers. Like the US, it also faces a collapsed real estate bubble,” Forbes e-source informs Nov. 11.

According to the source, forecasts by the Bank of England are based on assumption that current interest rate of 0.5% raises to be consistent with “market’s expectations of an average of 1.1 percent in the third quarter of 2010 and 2.1 percent in the first quarter of 2011,” the Bank’s report says.