The UK economy will struggle to avoid a recession in 2009, according to the summer forecast from Ernst & Young's ITEM Club.
Gross domestic product is predicted to grow at only one per cent over the next 12 months and it believes that inflation will remain above three per cent for the period.
Ernst & Young also predicts that the levels of unemployment across the UK will "substantially" rise in the next year.
Peter Spencer, chief economist to the Ernst & Young ITEM Club warned that Britons are going to see it "get a great deal worse before it gets better".
"We expect base rates to fall to four per cent by the end of 2009. This will help to put a cushion under the level of demand in the economy and set the scene for a recovery in 2010," added Mr Spencer.
The Office of Fair Trading recently claimed that bank accounts were "not serving customers well" and outlined its desire for greater transparency in the banking market.
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