• Barclays expects Bank of England to raise GDP forecasts at today’s meeting

Market news

2 February 2017

Barclays expects Bank of England to raise GDP forecasts at today’s meeting

"On Thursday, we expect the BoE to maintain its current policy parameters but likely higher GDP growth forecasts should support rate hike expectations and GBP. Given the strong performance of the UK economy over Q4, the Bank is likely to adjust higher its growth forecasts but may also note some concern about the sustainability of consumption, given the high level of household debt. The inflation forecasts are likely to stay unchanged as Q4 inflation was close to the bank's forecast while a lessening of imported price pressures and higher UK interest rates are counterbalanced by higher inflation globally" - efxnews.

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