Bank of England Confident About Recovery

Bank of England governor Mark Carney says the UK recovery has “taken hold” and unemployment will fall sooner than it had forecast.

The comments came in the Bank’s latest quarterly inflation report, which raised the forecast for UK economic growth this year and next.

Mr Carney has said the Bank will not consider raising interest rates until the jobless rate falls to 7% or below.

On Wednesday, the UK unemployment rate was reported at 7.6%, down from 7.8%.

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There are still hurdles to overcome before growth gets back to a sustainable level, including boosting business investment and trade”

Katja Hall
CBI
Growth for this year is forecast to be 1.6%, up from 1.4% previously thought, and for next year, annual growth is expected to be 2.8%, rather than the 2.5% it predicted in August.

The report said: “In the United Kingdom, recovery has finally taken hold. The economy is growing robustly as lifting uncertainty and thawing credit conditions start to unlock pent-up demand.”

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza