Bank tipped to increase growth forecast to 3% for 2014

The Bank of England is expected to raise its growth forecast for the UK to 3% following the strong recovery the country has seen.

Economists told the Sunday Times the Bank, which issues its latest Inflation Report this Wednesday, is likely to say growth could be 3% next year, returning to pre-crisis levels and growing quicker than other developed countries including the US. The services sector is performing particularly well and could help growth in the fourth quarter of 2013 to be above 1%, they said. However, overall growth for 2013 is only expected to be around 1.5%. Governor Mark Carney could also raise the forecast for the 7% unemployment rate rule; the rate unemployment needs to fall to before he will cons...