GDP is forecast to grow by around 1½ per cent this year and in 2018

Key points

• 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.