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BCC: Business Confidence Would Benefit from Greater Clarity from the MPC

  • BoE predicts GDP growth of 2.6% in 2015, 2.6% in 2016 and 2.5% in 2017
  • BoE predicts inflation at 0.7% at the end of 2015, 1.7% at the end of 2016 and 2.1% at the end of 2017
  • Average earnings growth is forecast to strengthen to 2.5% in 2015, 4.0% in 2016 and 4.0% in 2017

Commenting on the Bank of England’s (BoE) Quarterly Inflation Report, David Kern, Chief Economist at the British Chambers of Commerce (BCC) said:
“Although the Bank of England has downgraded its GDP growth forecast, these figures still demonstrate that the UK’s economy will continue to grow robustly over the next few years.

“We agree that signs of a slowdown in the economy since the start of this year will give way to improved momentum in the next few quarters. However, the Bank of England’s subdued assessment of future productivity growth is a little pessimistic.

“The Bank’s inflation forecast is broadly in line with our own, including their assessment that inflation will not increase above its 2.0% target until 2017. With inflation remaining low and more needing to be done to secure the recovery, the MPC should confirm that it will not consider increasing rates in the foreseeable future.”

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