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THE major central banks in the world are unlikely to raise interest rates until 2013 as economists predict there is a "very high" probability that US economy would return to recession.

Citigroup said that the global economy is cooling as governments from Europe to the US introduce austerity measures to try to reduce budget deficits and unemployment restrains consumer spending.

"Global economic prospects continue to worsen markedly, especially for many advanced economies," Citigroup economists wrote in a note to investors. Citigroup cut its estimate for global economic expansion this year to 3.1pc from 3.4pc and lowered its 2012 forecast to 3.2pc from 3.7pc.