UK Economics

UK Economic Outlook

19 April, 2018

Economy to withstand higher interest rates

We maintain our relatively optimistic view about the prospects for UK economic growth over the next few years. In particular, a recovery in real earnings should help household spending growth to regain some momentum, while we think investment will continue to shrug off Brexit uncertainty. Against this solid economic backdrop, we expect the Monetary Policy Committee (MPC) to raise interest rates faster than markets anticipate. But the economy should weather higher interest rates well.

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