Prospects for the UK economy

| Publication date: 1 Nov 2017 | Theme: Macroeconomics | NIESR Author(s): Amit Kara; HantzscheA; LennardJ; CLenoel; Rebecca Piggott; CThamotheram; Young, G | Journal: National Institute Economic Review Issue 242 | Publisher: Sage Publications, London
  • GDP is forecast to grow by around 1½ per cent this year and in 2018. Our forecasts have been revised lower since August.
  • Annual consumer price index inflation peaks at 3.2 per cent in the final quarter of this year before easing back to the target rate of 2 per cent in the second half of 2019. The risks to that forecast are tilted to the downside.
  • We expect the Bank of England to raise the policy rate by 25 basis points this month and again every six months until Bank Rate reaches 2 per cent.

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