CBI: BoE to hike rates in Q1 2015
According to the latest Confederation of British Industry report, the Bank of England will likely raise interest rates in Q1 2015.
Confederation’s 2014 UK growth forecast was revised up from 2.7% to 3.0%. As for 2015, the economy is expected to grow by 2.7% vs. previously forecasted 2.5%.
However the CBI warned that political uncertainty remained “a major risk to the recovery” (they mean the elections coming in May 2015):
“Businesses recognize the realities of election time but want all parties to ensure their policies make a positive difference. Politicians must be wary of the risk of headline-grabbing policies that weaken investment, opportunity and jobs”.