Growth expectations revised upwards
The Bank of England now expects the UK economy to grow 2% in 2017, up from the 0.8% forecast it made in August. “Domestic demand has been stronger than expected in the past few months, and there have been relatively few signs of the slowdown in consumer spending that the committee had anticipated following the referendum,” the Bank said in its latest Quarterly Inflation Report. The Bank has also reversed its forecast for rising unemployment after the Brexit vote by projecting that 250,000 fewer people will lose their jobs in the next three years than it had previously anticipated. Interest rates were held at 0.25%.