BofE optimistic on UK growth levels

The Bank of England expects the UK economy to grow by 2.5% this year and 3.2% in 2007. This view is ...

The Bank of England expects the UK economy to grow by 2.5% this year and 3.2% in 2007. This view is based on a series of optimistic assumptions, such as that consumer spending growth will edge up towards its historical average, world trade will be reasonably firm and UK export performance will show an improved relative trend. Finally, they expect business investment to rise moderately in response to gathering momentum elsewhere in the economy. We think that economic growth will fall some way short of the Bank of England's forecasts. The consensus of non-official economists sees growth ac...