BoE gives UK economy the green light

The Bank of England (BoE) has announced plans to upgrade its growth forecasts for the UK economy, a report has said.

The Monetary Policy Committee (MPC), made up of BoE economists and external experts that set UK interest rates, now “expects less of a slowing in UK GDP growth in the second half of 2016”.

The BoE judges that growth in the third quarter (Q3) of 2016, originally forecast at 0.1 per cent, will now be between 0.2 per cent and 0.3 per cent.

The official figures are due to be released in the next MPC meeting in November.

Experts suggest the UK economy is performing more “robustly” than expected. Consumer confidence has thrived, it says, with strong retail sales figures in July and August reflecting that.

The static rate of inflation is also good news, say experts, despite the increased costs of imported good due to the fall in value of sterling.

And according to the MPC, the housing market is also “less negative than expected”.

Chancellor of the Exchequer, Philip Hammond, will deliver his first Autumn Statement on Wednesday 23 November, where he is expected to use the announcement to “reset” economic policy.