Interest rates to stay low despite recovering economy

We are publishing our latest UK Quarterly Review today and the economic mood has brightened considerably since the last Review when a triple-dip was still a real possibility. Although GDP growth over the next couple of years will hardly be spectacular, we think that a more robust recovery will be getting underway by 2015. That said, with so much slack in the economy, this will not require a hasty policy tightening – indeed, we expect interest rates to stay at 0.5% until at least 2016.