IMF raises UK growth forecast

The International Monetary Fund has revised up its forecast for UK GDP growth in 2012 from 0.6% to 0.8%, amid the return of "some optimism" to the global economy.

In its latest quarterly report, the IMF added it expects the world economy to expand 3.5% this year and 4.1% in 2013, up from its January forecasts of 3.3% and 4% respectively. Assessing the UK, the IMF said it was more positive than before, with the Bank of England now having more room to manoeuvre than many on monetary policy thanks to recent falls in inflation back towards the 2% target. The comments came despite today's climb in headline CPI to 3.5%. The UK forecasts bring the IMF's estimates in line with those provided by the Office for Budget Responsibility. But the IMF's revisi...