Today, the Bank of England announced its latest decision on interest rates and unveiled its quarterly inflation report.

As predictions suggested, interest rates didn’t change and the 2017 growth forecast has risen for the second time in three months.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Interest rates are staying the same

The Bank’s Monetary Policy Committee unanimously voted to leave UK interest rates unchanged at 0.25 percent.

The decision said:

“At this meeting, all members agreed that it remained appropriate to maintain the stance of monetary policy. All members also agreed that, while the committee needed to continue balancing the prospect of a period of above-target inflation with the support that monetary policy gave for activity and employment, there were limits to the degree to which above-target inflation could be tolerated.”

Growth forecasts are up

The growth forecast for the UK economy is up for the next two years.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The BoE expects GDP to rise by two percent this year, higher than the 1.4 percent which was previously suggested, but lower than the pre-Brexit forecast in May, which was 2.3 percent.

This means that the forecast for 2018 has been pushed up, from 1.5 percent to 1.6 percent, but more important that the Bank no longer expects the economy to slowdown due to the Brexit vote.

Real consumer spending is likely to slow

Lack of pay growth and higher import prices thanks to the depreciation in sterling means household income growth is going to pretty weak over the next few years.

However, unemployment forecasts have been revised down, which is a good thing.

This is expect to be 4.9 percent this quarter, with five percent in early 2018 and 2019, compared to the previous forecast in November which had this at five percent, 5.5 percent and 5.6 percent respectively.