Greenwood: UK growth to hit 2% this year

Invesco's chief economist John Greenwood has shot down bearish forecasts for economic growth in the UK and said it should beat expectations from the Office for Budget Responsibility (OBR).

Greenwood said he remains bullish on the UK economy, with modest growth expected over the next three to four years, and he said in the near term growth should beat forecasts. An expansion of GDP by 2% in 2011 is well ahead of expectations from the government backed OBR, which recently downgraded its own forecast to 1.7% growth this year. However, Greenwood said the Bank of England is sensible to wait for the economy to be able to tolerate rate rises, and he tips the MPC to begin raising interest rates gradually from 2012. "As far as the future is concerned, I am confident inflation...