UK GDP expected to grow at 1.7% this year

Key points

• GDP is forecast to grow at a rate of 1.7 per cent this year and 1.9 per cent in 2018.
• Consumer price inflation is projected to peak at 3.4 per cent at the end of 2017.
• We expect the MPC to keep interest rates unchanged until mid-2019, despite the temporary rise in inflation.
• The current fiscal rule suggests further fiscal tightening is now needed in the next Parliament.