The Bank of England is expected to raise its economic forecasts for the UK on Thursday, as the vaccination program and the lifting of the lockdown aid the country’s recovery.
Experts predict that policymakers at the Bank will significantly upgrade their growth forecast while keeping interest rates at 0.1 percent.
While the latest economic lockdown is expected to cause the gross domestic product (GDP) – a key indicator of the economy – to fall once more between January and March, the impact is expected to be far less than initially anticipated as the economy becomes more resilient.
GDP rose 0.4 percent in February, after a 2.2 percent fall in January, even though England was still in full lockdown.
Economists also believe the economy has already got off to a strong start in the second quarter as non-essential shops and outdoor dining reopened on April 12
Even though England was still on lockdown, GDP increased by 0.4 percent in February after falling by 2.2 percent in January.
Economists also think that the economy is off to a strong start in the second quarter, with non-essential shops and outdoor dining reopening on April 12th.
On Friday, banking behemoth Barclays predicted that the UK economy would expand by 6.5 percent this year, marking the best year of expansion since records began in 1948.
Last year, all eyes were on the possibility of negative interest rates; now, concerns about rising inflation have shifted the focus to when the Bank’s Monetary Policy Committee (MPC) might consider lifting them.
At this month’s meeting, the Bank may even signal plans to scale back its massive £895 billion quantitative easing (QE) program, according to some experts.