UK to post strongest growth in G7 - report

The UK economy will grow faster in 2014 than any other G7 economy, while low wage rises will ensure interest rates do not rise until next year, an influential report has forecast.

UK GDP growth will hit 3.1% this year, spurred by strong capital investment by businesses, the EY Item Club said. Meanwhile, interest rates will not rise until the first quarter of 2015, it predicted. "After several false starts, this time [the recovery] could be different," said EY's chief economist Mark Gregory. The Item Club raised its forecast for growth this year to 3.1% from 2.9% previously. This, it said, was due to an expected 12.5% jump in business investment. > Read: Households' pessimism about finances hits six month high as rate rise fears bite < This compares with...