Speaking at a monetary policy forum in London, Deanne Julius and Charles Goodhart said that the UK is at a rate of growth that is probably close to the trend rate needed to achieve escape velocity, the term coined by new Bank of England Governor, Mark Carney, to describe the point when an economy begins to grow sustainably again.
Mr Julius said that the UK is now at a rate of growth trend of around 2 per cent to 2.5 per cent, despite a recession in the Eurozone and austerity, and also despite what the IMF thinks is slowing global growth.
Meanwhile, former Bank Deputy Governor, Sir John Gieve, predicted at the same forum that UK growth could recover “quite swiftly to 2.5 per cent or more”.
He suggested that the economy had turned a corner after the first three months of 2013 saw an expansion of 0.3 per cent, followed by an increase of 0.6 per cent in the following quarter.
The leading economist said that with increased consumer spending and additional business investment the economy would continue to pick up speed. If so, he said, the Bank of England was likely to change policy on either interest rates or quantitative easing as early as next year.
News of the predictions comes as the GfK consumer confidence barometer for July rose by five points to -16, its strongest reading since April 2010, showing that confidence has recovered strongly after an unparalleled five-year trough.
For more information, please contact Glazers, Chartered Accountants London or visit www.glazers.co.uk
[ add comment ] ( 12 views ) | permalink |
( 3 / 654 )
Random Entry
