Britain’s economy set for a pre-Brexit boost
BRITAIN’S economic growth will accelerate this year as the country approaches the Brexit deadline, the Bank of England said yesterday.
The Bank hiked its outlook for the UK economy from 1.6 per cent to 1.8 per cent in 2018 on the back of booming global growth.
But although the rate-setting monetary policy committee (MPC) voted unanimously to leave rates at 0.5 per cent this month, they put borrowers on notice for a rise earlier than expected, stoking expectations for an increase as early as May, in a bid to control inflation.
Higher interest rates will come as a blow to mortgage payers who will see their monthly payments increase, but hard-pressed savers who have seen paltry returns on their investments since 2009 will welcome the move.
Bank of England Governor Mark Carney said: “British exporters are in a sweet spot, with sterling down around 16 per cent overall... in anticipation of a Brexit that has not yet happened. Global growth has been stronger, broader and healthier than it has been for some time.
“This is a crucial year for the Brexit negotiations and we will all be better informed by this time next year about the future trading relationship with the EU and that will have an effect on businesses and households and the outlook for the economy, inflation and therefore the policy of the MPC.”
Tax specialist and former MPC member Andrew Sentance said: “Even though recent UK economic growth has been subdued, our economy will receive continued support from strong global growth in 2018.
“The three main engines of the global economy – US, Europe and Asia – are performing well and we are now in the best phase of global economic growth we have seen since the financial crisis.”