The National Institute of Economic and Social Research (NIESR) upgraded its GDP growth forecast for the U.K. for 2017 on Tuesday. The U.K. GDP is expected to grow 2.3% in 2016, unchanged from the previous estimate. The NIESR expects the U.K. economy to expand at 2.7% in 2017, up from the previous estimate of 2.6%.

The NIESR said that the economic growth will be driven by consumer spending.

The think tank said that it expects the Bank of England's interest rate to remain unchanged until the second half of 2016.

The inflation is expected to rise 0.3% this year, 1.3% in 2017 and 2.1% in 2018.

The NIESR also said that the Chancellor will miss his main fiscal target.